Stocks finished mixed as chips slid before Nvidia's report: Monday recap

Wall Street opened a pivotal week for the artificial-intelligence trade on an uneven note. Heavy selling in chipmakers pulled the technology-heavy gauges lower while blue chips held firm. The S&P 500 slipped 0.29% to close at 7,652.86. The Dow gained 0.27% to 53,417.16. The Nasdaq-100 fell 1.0%, and the broader Nasdaq Composite ended at 25,980.19. The Dow’s 140-point advance leaned on banks and household-goods makers, the groups that steadied the broad market while chips sank. The split told the day’s story.

The divide ran straight through the sector map. Consumer staples led, up 1.70%, with financials close behind at 1.29% and utilities up 1.05% — the defensive and dividend-paying groups investors reach for when they trim risk. Communication services added 0.83%, and real estate and consumer discretionary rose 0.55% and 0.24%. Health care and materials finished little changed. Technology sat at the bottom, down 1.78% and by far the weakest group, while energy fell 0.83% and industrials slipped 0.69%. Eight of the eleven sectors finished higher. The three that fell simply carried more weight, technology most of all, which is how a session with broad sector gains still left the S&P 500 in the red. When staples and utilities lead and technology trails, money is moving toward safety.

The pressure on technology traced back to its single biggest name. Nvidia, the largest maker of AI chips, reports quarterly results Wednesday afternoon, and traders spent Monday paring exposure to semiconductors before a print that has become the market’s main event. Chip stocks retreated across the board ahead of it. A second overhang came from Washington, where the U.S. announced fresh sanctions on Iran, adding a geopolitical worry to an already cautious tape. Both threads pushed the same way: away from the shares that have carried the rally, toward steadier ground.

Monday extended a bruising stretch for technology. Over the past five sessions the Nasdaq-100 has fallen 3.2% and the S&P 500 1.2%, while the Dow held nearly flat, off just 0.1%. The sector ledger across that span tells the same story. Technology has dropped 5.4% and industrials 3.9%, the two weakest groups of the week, even as health care climbed 4.6% and consumer staples 3.3%. The move into defensive corners of the market did not begin today; Monday only deepened it.

Breadth offered no relief beneath the surface. The Russell 2000 fell 0.66% and has shed 2.0% over the past week, so smaller companies lagged the Dow and gave the market no counterweight to the tech decline. The Cboe Volatility Index rose to 15.85, up 4.8% on the day. It stayed low by historical standards, a reading that points to caution rather than fear. The 10-year Treasury yield ticked up to 4.69%.

The week only gets denser from here. Nvidia’s report Wednesday headlines a stretch that also brings a second estimate of second-quarter economic growth and the Federal Reserve’s preferred inflation gauge, along with a fresh reading on consumer confidence and durable-goods orders. Any one of them could reset the mood in a market already leaning defensive. For now, the tape is bracing.

This is a general-market summary for information only — not investment advice, and not a recommendation regarding any security.