US sharemarkets closed mixed on Monday as weakness in technology and semiconductor stocks offset gains in energy shares, while investors monitored developments surrounding the Iran war and rising bond yields.
The S&P 500 slipped 0.07% to close at 7,403.05, while the Nasdaq Composite fell 0.51% to 26,090.73, marking a second straight session of declines for both indices. The Dow Jones Industrial Average rose 159.95 points, or 0.32%, to finish at 49,686.12.
Technology stocks remained under pressure following a sharp rise in global bond yields last week, which weighed on high-growth sectors that had previously driven Wall Street to record highs.
Seagate Technology led declines in the memory-chip sector after its chief executive said during a JPMorgan conference that building new semiconductor factories would “take too long”, raising concerns that supply may struggle to keep pace with growing demand linked to artificial intelligence infrastructure.
Investor sentiment was also influenced by developments in the Middle East after President Donald Trump said he would delay a planned military strike on Iran following requests from Qatar, Saudi Arabia and the United Arab Emirates to allow further negotiations to continue.
Trump said “serious negotiations” were underway that could potentially lead to an agreement acceptable to the United States, although tensions between Washington and Tehran remained elevated.
Last week’s stronger-than-expected inflation data also reinforced expectations that the Federal Reserve may keep interest rates elevated for longer.
Australian Market Outlook
Australian shares are expected to open higher after US equities recovered earlier losses following signs that negotiations between the US and Iran may continue.
S&P/ASX 200 futures are up 92 points, or 1.1%, to 8,615.
Energy stocks may remain supported locally following another rise in oil prices overnight, while technology shares could remain under pressure after weakness across US semiconductor companies.
Micron Technology fell 6% amid concerns that labour disruptions at Samsung could create additional pressure on semiconductor supply chains.
Locally, Reserve Bank of Australia assistant governor Sarah Hunter is scheduled to speak at the Bloomberg Forum for Investment Managers in Sydney at 9.25am AEST.
