U.S. Stocks Mixed as Chip Weakness Offsets Gains; Oil Tumbles 8% on Iran Deal Hopes
U.S. equities ended mixed with the S&P 500 flat as semiconductor losses countered broader gains. Oil prices slumped over 8% on signs of U.S.-Iran diplomacy, pulling Treasury yields lower ahead of the Fed decision.
Stocks ended the session mixed as chip stock weakness offset broader gains. The S&P 500 finished nearly unchanged, while the Dow Jones Industrial Average added 0.5% and the Nasdaq 100 slipped 0.3%. Semiconductor shares extended declines on worries that massive AI investments may not yield adequate returns.
Oil prices tumbled, with WTI crude dropping 8.2%, after signs of diplomatic progress between the U.S. and Iran reduced immediate supply disruption fears.
Treasury yields moved lower as the sharp drop in oil prices eased near-term inflation worries ahead of the Federal Reserve’s policy decision. The central bank is widely expected to hold interest rates steady, although markets continue to price in a potential rate increase later in the year.
Investor attention now turns to upcoming big tech earnings, seen as a test of whether AI-related spending can justify lofty valuations. Meanwhile, Nvidia announced fresh AI investment partnerships worth hundreds of billions of dollars, underscoring the sector's capital commitments. Market sentiment remains driven by AI earnings, Fed policy signals, and the trajectory of U.S.-Iran diplomacy.
Source: First Squawk