U.S. equity markets closed with minimal movement on Monday, as the S&P 500 slipped 0.2%, the Dow Jones Industrial Average fell 0.6%, and the Nasdaq Composite ended flat. The subdued session followed a period of volatility in artificial intelligence (AI) stocks, which managed to stabilize after earlier declines.
AI chipmakers including Nvidia (NVDA) rose 0.2%, Sandisk (SNDK) gained 2.7%, and Advanced Micro Devices (AMD) added 1.6%. AMD was in the spotlight after announcing a new AI collaboration with Microsoft (MSFT), reinforcing the sector's growth narrative. The recovery in AI shares helped offset broader market weakness, though trading volumes were light as investors adopted a cautious stance ahead of a busy earnings week.
In a notable move, AMC Entertainment Holdings (AMC) surged 26.8% following the release of robust quarterly revenue figures, signaling a strong rebound in theater attendance. Domino's Pizza (DPZ) also rose 2.1%, contributing to the selective gains in consumer discretionary stocks.
Treasury yields edged higher, with the 10-year note reaching 4.59%, as market participants weighed ongoing inflation concerns and geopolitical tensions. The yield on the 2-year Treasury also ticked up to 4.198%. Meanwhile, U.S. stock futures pointed to a slightly higher open on Tuesday, buoyed by easing inflation data and a drop in the 10-year yield to around 4.52%. Import prices rose 0.3% in June, adding to persistent price pressures, but the Federal Reserve is widely expected to maintain interest rates at current levels.
Investors are now turning their attention to a slew of corporate earnings reports due later this week, including those from Alphabet (GOOGL), Tesla (TSLA), AT&T (T), and Texas Instruments (TXN). Semiconductor earnings are forecast to surge 133% in the second quarter, accounting for 44% of the S&P 500's profit growth, underscoring the sector's critical role in the current market cycle.
In other markets, the London Stock Exchange announced plans to launch an overnight trading platform in early 2027, aiming to attract retail investors from Asia and other regions seeking 24/7 access. The platform will initially offer exchange-traded products linked to UK and US indices.
Internationally, the ASX 200 finished unchanged, with gains in gold and copper stocks offsetting declines in healthcare and banking sectors. In Europe, UK defense shares rose after former defence secretary John Healey was named finance minister, while the broader market was supported by a recovery in tech and AI-related names.
Geopolitical risks remain a focus, with Iran citing nuclear safety concerns after a US missile strike hit an unfinished nuclear power plant. The incident adds to tensions in the Middle East, though oil prices eased on ongoing ceasefire mediation.
As the week progresses, market participants will closely monitor key economic data, including Friday's US PMI report, for further clues on the health of the economy and the trajectory of monetary policy.
