After the June 19 holiday, Wall Street reopened on a cautious note, as the S&P 500 and Nasdaq 100 indexes fell after hitting all-time highs around midday trading in New York. That decline was driven by profit-taking in chipmaker stocks and rising Treasury yields, which eased risk sentiment.
of iShares Semiconductor ETF SOXX fell 2.4%, marking its worst session since May 1, after reaching technically “overbought” levels earlier in the week.
Oil prices rose above $81 a barrel, aiming for the highest close since late April. That was driven by bigger-than-expected declines in US inventories last week, fueling a rally in oil-related companies.
Small caps also softened, while blue chips saw a rebound, with the Dow Jones Industrial Average outperforming other major indexes with a 0.4% gain.
Long-term Treasury yields rose, with the 10-year yield up 5 basis points to 4.27%, after mixed economic data released earlier in the day. Jobless claims rose slightly more than expected last week and a gauge of manufacturing activity in the Philadelphia region missed estimates, hitting a five-month low.
Additionally, housing data showed sharp declines in both housing starts and building permits, reviving concerns about a tight real estate market.
Bonds fell, with iShares 20+ Year Treasury Bond ETF TLT decrease by 0.9%. The US dollar index (DXY) rose 0.4%, with the greenback gaining ground against all major currencies.
The Bank of England kept its key policy rate unchanged at 5.25%, as expected, while the Swiss National Bank cut rates by 0.25 percentage points to 1.25%. As a result, the British pound and the Swiss franc fell by 0.5% and 0.8% respectively against the dollar.
Gold, tracked by SPDR Gold Trust GLDincreased by 1.1%, while Bitcoin BTC/USD remained flat below $65,000.
Monday’s performance in major US indices, ETFs
| Main indexes | PRICE | %chg 1-day |
| Dow Jones | 38,982.71 | 0.4% |
| S&P 500 | 5,477.61 | -0.2% |
| Russell 2000 | 2020, 24 | -0.3% |
| Nasdaq 100 | 19,793.76 | -0.6% |
According to Benzinga Pro data:
- of SPDR S&P 500 ETF Trust SPY was 0.3% lower at $547.24.
- of SPDR Dow Jones Industrial Average DIA was 0.4% higher at $390.90.
- Heavy technology Invesco QQQ Trust (ARCA: QQQ ) was 0.6% lower at $482.43.
- In terms of sector, POWER Choose the SPDR Sector Fund XLE performed better, with an increase of 1.8%, while Technology Select Sector SPDR Fund XLK lagged behind, falling by 0.9%.
Monday’s stock movers
- The largest company in the world Nvidia Corp. witnessed a decrease of 2%, while Qualcomm Inc. QCOM, Micron Technology Inc. smack AND Wolfspeed Inc. wolf all fell by over 5%.
- Advanced Micro Devices Inc. AMD grew by nearly 4%, outpacing all other chipmakers. This increase followed the announcement that Sun Singapore SystemsSingapore’s largest parking solutions provider, has chosen AMD to power its AI-based parking management platform.
- Solar-related stocks fell sharply after JPMorgan cut price targets Enphase Energy Inc. ENPH from $128 to $124 and up SolarEdge Technologies Inc. SEDG from $73 to $59.
- Gilead Sciences Inc. Totals rose more than 8% after the company announced that a twice-yearly antiviral injection had successfully prevented HIV in all test subjects during a trial involving thousands of women and girls in South Africa and Uganda.
- Accenture plc ACN rose over 6% despite missing revenue and earnings estimates last quarter.
- Other stocks that reacted to the company’s earnings were The Kroger Company cf.down 2.8%, Darden Restaurants Inc. DRIdown 1.5%, Jabil Inc. JBLwith a decrease of 8.7% and Commercial metals company CMCup to 5%.
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Illustration created using artificial intelligence via MidJourney.