S&P 500 and Nasdaq 100 Fall as Chip Stocks Weigh on Markets

what happened

Stocktwits reported that the S&P 500 closed Monday down 0.1%, while the Nasdaq 100 fell 0.7% and the Dow Jones Industrial Average gained 0.4%. The Russell 2000, which tracks small-cap stocks, lost 0.5%. The SPY ETF declined 0.1%, DIA rose 0.4%, and QQQ slipped 0.8%. Retail sentiment on Stocktwits for QQQ, SPY and DIA was “bullish,” with message volumes described as “high.”

Semiconductor weakness pushed SMH and SOXX down 2.5% to 3%. Nvidia, Advanced Micro Devices, Intel and Micron Technology were under pressure, with Micron falling 3.9% amid concerns about China’s CXMT and progress on its next-generation chip architecture. The broader VGT ETF dropped 1.1%. Salesforce supported the Dow, rising 2% after Bank of America gave the company a double upgrade.

Oil futures advanced after President Donald Trump announced an “energy ceasefire” between Russia and Ukraine over the weekend; Ukrainian President Volodymyr Zelenskyy later said Moscow had broken it. WTI crude rose 2.1% to settle at $93.74 a barrel, while Brent gained 1.8% to $106.65. JPMorgan, Morgan Stanley and Wells Fargo will begin the banking earnings season this week, as investors assess AI infrastructure spending, hyperscaler capital expenditure, and the effects of higher rates and inflation on corporate budgets.

Among individual stocks, Meta Platforms introduced its newest artificial intelligence model, while Microsoft outlined plans to deploy its Azure Maia chips at scale from next year. Chipotle attracted attention after Starbucks denied reports of a possible acquisition. Bumble jumped 50% on reports of advanced talks to go private at a valuation of roughly $1 billion; Match Group rose 1%, and Snap advanced for a sixth straight session as traders bought bullish call options.

why it matters

The session highlighted a split between technology shares and the Dow. Upcoming bank results may provide an early indication of how markets are weighing AI-related spending, corporate resilience and tighter financial conditions.

instruments