Wall Street Highlights: S&P 500, Nasdaq End Mixed As Chipmaker Earnings, CPI Due To Set Pace

Six out of the 11 sectors in the S&P 500 showed modest gains at market close, led by energy stocks driven by higher oil prices.

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Friday saw the gauge return to all-time highs after jobs data showed the US economy unexpectedly shed jobs in July, which could prompt the Federal Reserve to delay interest-rate increases.
(Photo: Bloomberg News)
US stocks held steady through Monday's market close after a strong earnings week as investors continue to navigate the uncertain path of interest rates and war in Iran. The market is gearing up for the final stretch of corporate earnings, with chipmakers set to provide confirmation for the long-winded debate over valuations.

The S&P 500 index closed flat, slipping into marginal losses throughout the day. Friday saw the gauge return to all-time highs after jobs data showed the US economy unexpectedly shed jobs in July, which could prompt the Federal Reserve to delay interest-rate increases. The technology-heavy Nasdaq 100 index closed down at 0.3%.

Stocks remained "generally static" on Monday, with "a slight negative bias as yields and oil ticked a little higher," said Steve Sosnick, Chief Strategist at Interactive Brokers.

Six out of the 11 sectors in the S&P 500 showed modest gains at market close, led by energy stocks driven by higher oil prices. Energy stocks saw their biggest gains since April 2025 as plans for opening the Strait of Hormuz continue to stall.

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President Donald Trump spoke out against Iran's war compensation demands following his calls for economic pressure on the country to reopen the Strait of Hormuz.

There are fewer big market catalysts this week, though investors will look for further clues on the AI trade - and on the debate around chip valuations - when Applied Materials Inc., Lumentum Holdings Inc. and Cisco Systems Inc. report in the coming days. Sandisk Corp. hosts an investor day on Thursday. Investors will look to new CPI and PPI inflation data this week for guidance on the path of Fed rates.

"Declines are modestly pacing advancers, both in the broader market and in SPX. Bottom line, it's a quiet summer Monday with few catalysts today and no major ones expected until CPI on Wednesday," Sosnick said.

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The bull market has seen a vote of confidence from a strong earnings season so far. JPMorgan Chase & Co. strategists, led by Dubravko Lakos-Bujas, boosted their 2026 S&P 500 year-end target, citing a strong earnings season and sooner-than-expected guidance boosts from AI companies.

"The surge to record highs has renewed concerns about investor complacency," notes Mark Hackett, chief strategist at Nationwide Funds Group. He points out that Bank of America's Bull & Bear Indicator has risen to 9.7, its highest level since 2021, which is seen as sign of extreme bullishness and triggering a contrarian sell signal.

The market may need time to digest last week's gains. Nathan Peterson, Charles Schwab director of derivatives research and strategy, sees the market as "overbought on a very-near term basis" given the strong performance last week. Still, "the momentum is to the upside," he said, adding that the long-term outlook favors the bulls.

Inflation remains a consistent theme in earnings outlook, according to JPMorgan analyst Ellen Wang, who observed that, "management teams increasingly describe a 'higher inflation, higher growth' backdrop where tariffs and commodity inputs create headwinds that can lag through supply chains" into the first half of 2027.

CPI data, to be reported this week, will provide an opportunity to refute this inflation narrative, according to Citi analyst Andrew Hollenhorst, noting that "a second consecutive month of cooler monthly inflation and year-on-year core CPI falling within basis points of mandate-consistent rates on Wednesday should help refute the popular idea that inflation is moving further above target."

Federal Reserve Bank of Cleveland President Beth Hammack said in an interview with Yahoo Finance that it's possible a number of interest rate hikes may be needed to bring inflation down to the central bank's 2% target.

Nvidia closed down 2.9%. The company announced a partnership with Wall Street investment giants for a $500 billion funding package.

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Sectors to watch

  • Optical stocks fell after B Riley said a ban on Chinese data center components was unlikely
  • SpaceX saw its third consecutive gain, returning back to IPO price levels
  • Healthcare stocks showed major swings throughout the day as Tenax Therapeutics plummeted to an intraday record-fall and AbCellera Biologics Inc. jumped the most intraday since March 2021

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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