US stocks finished mixed on Monday as investors continued to rotate out of technology shares and into more defensive sectors, while a sharp decline in oil prices supported broader market sentiment.
The Nasdaq Composite fell 1.07% to 25,164.32, while the S&P 500 declined 0.51% to 7,541.40. Both indices surrendered earlier gains of more than 1%. The Dow Jones Industrial Average outperformed, rising 213.67 points, or 0.41%, to close at 51,983.98.
Technology stocks remained under pressure amid concerns about the scale of artificial intelligence investment. Nvidia and Meta Platforms each slipped 1%, while Apple declined nearly 2% ahead of its quarterly earnings.
Marvell Technology plunged almost 13% and Lumentum dropped 18% following the announcement of a US$115 billion acquisition deal. Oracle fell 8% after outlining plans to raise US$20 billion through stock and bond sales to finance its AI infrastructure expansion.
Traditional industrial and consumer stocks helped support the Dow. Sherwin-Williams gained almost 6%, Home Depot rose 3.6%, while Honeywell, 3M and Boeing each advanced more than 2%.
Oil prices fell sharply on renewed hopes of diplomatic progress towards ending the Iran war. Brent crude dropped 7.63% to US$104.77 a barrel, while West Texas Intermediate declined 7.36% to US$96.46, following comments from US and Iranian officials indicating a potential willingness to resume peace negotiations.
Investors also remained cautious ahead of Tuesday’s US midterm elections and upcoming employment data, which could influence expectations for monetary policy.
Australian Market Outlook
Australian shares are set to open higher on Tuesday, with S&P/ASX 200 futures up 58 points, or 0.65%, to 8,924.
The positive lead follows a sharp retreat in global oil prices, although weakness in US technology stocks and uncertainty surrounding the interest rate outlook could temper gains.
The Reserve Bank is widely expected to raise the official cash rate to an 18-year high when it announces its decision at 2.30pm AEDT. Governor Michele Bullock will hold a press conference shortly afterwards, with investors looking for guidance on the outlook for further tightening.
Locally, ANZ-Roy Morgan Australian Consumer Confidence figures are due at 9.30am AEDT.
