Beirut: US stocks ended mostly higher Monday as sharply lower oil prices eased inflation concerns, while losses in semiconductor companies weighed on the technology-heavy Nasdaq. The Dow Jones Industrial Average rose 0.51%, or 262.83 points, to end the day at 52,210.08, while the S and P 500 edged up 0.016%, or 1.20 points to 7,413.18. In contrast, the Nasdaq Composite declined 0.18%, or 43.74 points to close at 24,932.08.
According to Anadolu Agency, crude oil prices fell after the US and Iran paused attacks, raising expectations that the conflict could move toward a diplomatic solution and reducing concerns over energy supply disruptions. International benchmark Brent crude futures fell around 11% to around $87.60 per barrel as of 2015GMT, while US benchmark West Texas Intermediate settled 9.8% lower at $81.65 per barrel.
The decline in oil prices supported consumer staples and other sectors sensitive to energy costs. However, technology shares remained under pressure amidst concerns over intensifying competition in the semiconductor industry. Notably, shares of AMD fell around 5.2%, Teradyne dropped 4.3%, and Micron Technology lost about 2.3%.
US-listed shares of Dutch chip-equipment manufacturer ASML plunged 5.8% after technology news outlet The Information reported that China had begun developing deep ultraviolet lithography machines used in semiconductor production. The report heightened concerns that Chinese manufacturers could reduce their dependence on foreign chipmaking equipment and increase competitive pressure on established global suppliers.
Investor sentiment toward semiconductor stocks was also affected by Chinese memory-chip producer CXMT's initial public offering on the Shanghai Stock Exchange. Markets are now focused on a series of quarterly earnings reports from major US technology companies including Amazon, Apple, Meta Platforms, and Microsoft.
The results are expected to provide further indications about artificial intelligence-related spending after Alphabet's latest earnings raised concerns about the scale and profitability of investments in AI infrastructure. Investors are also awaiting the US Federal Reserve's interest rate decision on Wednesday.
On the macroeconomic data side, durable goods orders in the US rose less than expected in June, up 0.3% month-on-month, or $1.1 billion, to $334.8 billion. Meanwhile, European stock markets closed higher on Monday, with the pan-European Stoxx Europe 600 index edging up 0.017% to close at 644.62 points. The UK's FTSE 100 gained 0.42% to 10,781.75 points, while Germany's DAX 40 rose 1.04% to 25,361.03. France's CAC 40 increased 0.40% to 8,406.06, and Italy's FTSE MIB advanced 0.49% to 52,054.95. Spain's IBEX 35 also rose 0.80% to end the day at 19,741.30.