U.S. stocks were mixed by midday Monday as a rebound in the beaten-down chip sector reignited the AI-infrastructure trade. The S&P 500 rose about 0.3% to near 7,482, while the Dow Jones Industrial Average slipped roughly 0.2% to around 52,025. The Nasdaq 100 outperformed with a 0.4% advance as chipmakers bounced off last week's lows. Small caps, as measured by the Russell 2000, also slipped 0.2%.
Treasury yields firmed as the oil-driven inflation angle stayed in focus. The 10-year yield rose about 4 basis points to 4.61%, recovering part of last week's 7-basis-point decline, while the five-year climbed to 4.34%. Markets are also pricing in one Fed rate cut this year. The odds of a September move are holding above 60% ahead of next week's FOMC meeting, where policymakers are widely expected to stay on hold.
West Texas Intermediate crude held near $82.60 a barrel, roughly flat on the day but clinging to five-week highs after last week's near-5% surge. In precious metals, gold was little changed near $4,012 an ounce. Bitcoin (CRYPTO: BTC) was up 1.5% to $65,300.
Monday's Performance In Major US Indices
According to market data:
- The Vanguard S&P 500 ETF (VOO) gained 0.3%.
- The SPDR Dow Jones Industrial Average ETF Trust (DIA) slipped 0.2%.
- The Invesco QQQ Trust (QQQ) climbed 0.4%.
- The iShares Russell 2000 ETF (IWM) fell 0.2%.
Chips And AI Infrastructure Spark The Rebound
The Technology Select Sector SPDR Fund (XLK) led the S&P 500 with a 0.9% gain, followed closely by the Energy Select Sector SPDR Fund (XLE), up 0.8% alongside firm crude, and the Communication Services Select Sector SPDR Fund (XLC), up 0.8% on Alphabet's strength. Rate-sensitive and defensive corners lagged, with materials, real estate, utilities, consumer staples and health care all in the red.
The rebound was concentrated in the AI-hardware complex. The VanEck Semiconductor ETF (SMH) rose 1.7% to pace industry groups. Chip bellwethers rallied, with Broadcom Inc. (AVGO) up 3.4% and Micron Technology Inc. (MU) surging 5.7%.
Stock Market Standout
IREN Ltd. (IREN) soared more than 19% after signing $2.8 billion in new multi-year AI Cloud contracts with a customer roster that includes Microsoft, Nvidia and Perplexity, prompting the company to lift its year-end AI cloud annual recurring revenue target above $4 billion. The deal lit up adjacent data-center and power names. Applied Digital Corp. (APLD), for example, jumped 8.3% in sympathy with no company-specific catalyst of its own. Galaxy Digital Inc. (GLXY) rose 10.4% and nuclear developer X-Energy Inc. (XE) gained 9.3%.
Optical supplier Lumentum Holdings Inc. (LITE) climbed 8.0%, extending an AI-optics run after Citi recently added an upside catalyst-watch on the shares. On the downside, Tempus AI Inc. (TEM) dropped 8.0% amid a reported CEO-linked insider share sale. Bloom Energy Corp. (BE) lost 5.6%, extending its drawdown from June's peak to over 40%.
Stocks reacting to earnings reports included:
- Domino's Pizza Inc. (DPZ) rose 3.2% to around $332 after Q2 revenue of $1.19 billion topped estimates, even though adjusted EPS of $4.07 missed the $4.26 consensus.
- AMC Entertainment Holdings Inc. (AMC) jumped roughly 13% to near $2.20 after posting record quarterly revenue of $1.6 billion, up 14.2%, a surprise $0.14 profit versus a forecast loss, and a 70% jump in adjusted EBITDA to $321.4 million.
- AGNC Investment Corp. (AGNC) was in focus ahead of its results due after Monday's close, with investors watching book value and the dividend as yields backed up.
Monday's Russell 1000 Top Gainers
Monday's Russell 1000 Top Losers
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