US stocks showed mixed performance Monday morning, with the S&P 500 standing near 7,409.63 at about 11:25 a.m. ET, almost unchanged after an early rally faded. The Dow Jones Industrial Average held a 0.35% gain at 52,133.20, while the Nasdaq Composite fell roughly 0.6%. Weakness in semiconductor stocks, particularly Nvidia's 3.9% decline and Micron's 6% drop, pulled technology shares lower despite initial relief from the pause in US-Iran hostilities. Investors shifted focus to chip competition following Chinese memory-chip producer CXMT's strong Shanghai debut, while a busy week of earnings from Microsoft, Meta, Amazon, and Apple and the Federal Reserve's two-day meeting beginning Tuesday added to market uncertainty.
S&P 500 Stands Near 7,409 as Semiconductor Stocks Decline
The S&P 500 opened sharply higher after the United States and Iran paused hostilities, reaching as high as 7,480.57 before losing momentum. At about 11:25 a.m. ET, the index stood near 7,409.63, almost unchanged for the session. Oil prices fell more than 5%, helping airlines, cruise operators, and other companies with heavy fuel costs, while energy producers moved lower with crude. Bond yields eased, with the 10-year Treasury yield falling to about 4.65% from 4.69% late Friday.
Nvidia Falls 3.9% and Micron Drops 6% on CXMT Competition
Semiconductor stocks became the market's main weak point. Nvidia fell about 3.9%, while Micron dropped more than 6% as investors reacted to the strong Shanghai debut of Chinese memory-chip producer CXMT and the prospect of greater competition. Microsoft and Apple traded higher, preventing an even steeper decline in the major indexes. The split within technology shows that investors are becoming more selective ahead of earnings from Microsoft, Meta, Amazon, and Apple.
S&P 500 Tests 50-Day Moving Average at 7,411
The S&P 500 sits almost directly on its 50-day exponential moving average near 7,411, making the 7,400 to 7,411 area the most important short-term pivot. A recovery above that zone could allow the S&P 500 to challenge 7,465 to 7,480, followed by the psychological 7,500 level. A stronger breakout would reopen the path toward the recent highs around 7,580 to 7,600. A sustained break below Monday's intraday low near 7,383 would weaken the setup and expose support around 7,300. The broader advance from the April lows remains visible, but the recent lower highs show that upward momentum has slowed.
Dow Jones Holds Above 52,000 Support Level
The Dow Jones remains slightly above its 50-period moving average near 52,062, while its relative strength index stands at 48.5, a neutral reading. Holding above 52,000 would keep the rebound intact and place resistance near 52,600, followed by the recent peak around 53,000. A drop below 52,000 could shift attention toward the 51,700 to 51,800 support area. The Federal Reserve begins a two-day meeting Tuesday and will release its decision Wednesday.
FAQ
What caused the S&P 500 stocks rally to fade Monday morning?
The S&P 500 rally faded as weakness in semiconductor stocks offset initial relief from the pause in US-Iran hostilities. Nvidia fell about 3.9% and Micron dropped more than 6% following the strong Shanghai debut of Chinese memory-chip producer CXMT. At about 11:25 a.m. ET, the S&P 500 stood near 7,409.63, almost unchanged for the session after climbing as high as 7,480.57.
Why did Nvidia and Micron stocks fall on Monday?
Nvidia and Micron fell as investors reacted to the strong Shanghai debut of Chinese memory-chip producer CXMT and the prospect of greater competition. Nvidia dropped about 3.9%, while Micron fell more than 6%. The declines made semiconductor stocks the market's main weak point and pulled the Nasdaq Composite roughly 0.6% lower.
What technical level is the S&P 500 testing?
The S&P 500 sits almost directly on its 50-day exponential moving average near 7,411, making the 7,400 to 7,411 area the most important short-term pivot. A sustained break below Monday's intraday low near 7,383 would weaken the setup and expose support around 7,300, while a recovery above that zone could allow the index to challenge 7,465 to 7,480.
