Monday mixed market winners broaden as tech and chip shares fall

Monday mixed market winners came from financials, consumer shares and health care as pressure on technology and artificial intelligence-linked stocks limited Wall Street’s advance, according to the CNBC Investing Club with Jim Cramer. The shift followed a roughly 7% drop in U.S. oil prices after the U.S. and Iran paused military strikes, with West Texas Intermediate crude retreating to about $83 a barrel.

Lower energy prices helped reduce inflation concerns and supported bond prices, CNBC said. Because bond prices and yields move in opposite directions, the rally in Treasurys pushed the 10-year Treasury yield lower, although it remained high at around 4.65%.

The move in oil and rates came as investors looked toward the Federal Reserve’s July policy meeting, which begins Tuesday. The rate decision is due Wednesday afternoon. The CME FedWatch tool showed markets assigning just over a 60% probability to no change in rates and nearly a 40% probability to an increase, according to CNBC.

What stocks were winning in Monday’s mixed market?

CNBC said groups that tend to benefit from lower oil prices led the session. Banks and financial stocks traded well, with the State Street Financial Select Sector ETF, known by its ticker XLF, reaching a new intraday record. Capital One recovered after declining following its earnings report last week, while Wells Fargo also moved higher.

Retail and consumer companies also gained. CNBC named TJX Companies, Starbucks and Costco among the stocks trading higher during the session. Industrials outside areas closely linked to data-center spending were also positive.

Health care added another source of market support. Johnson & Johnson reached a new all-time high, according to CNBC, and its shares were up about $20, or roughly 8%, since a post-earnings decline two weeks earlier. CNBC said the move showed that immediate market reactions to earnings reports can later reverse.

Why were chip and AI stocks under pressure?

The market’s gains were constrained by weakness in semiconductor and AI-related shares. The Philadelphia Stock Exchange Semiconductor Index fell about 4% for a second consecutive session, CNBC said. The index was down about 23% from its highest close on June 22, a date that came two days before Micron’s most recent earnings report.

Investors were also assessing capital spending by large technology companies. Alphabet said on its earnings call last week that capital expenditures would keep rising into 2027, CNBC reported. Earnings due later in the week from Meta Platforms, Microsoft and Amazon could offer further evidence on whether the same pattern is spreading across other large technology platforms.

Nvidia fell 5% as reports of talks with OpenAI revived concerns about circular financing structures, CNBC said. The reports described discussions in which Nvidia would provide a $250 billion backstop for one of OpenAI’s data-center projects. In such arrangements, investors often scrutinize whether money flowing between suppliers, customers and financiers is supporting durable demand or amplifying reported activity within the same ecosystem.

CNBC also cited concerns that China is narrowing the gap in artificial intelligence through cheaper models and semiconductor manufacturing tools. The reaction underlined how sensitive the AI trade remained to negative headlines after a period of large gains.

What comes next for earnings and data?

After Monday’s closing bell, CNBC said investors were due to hear from Nucor, Celestica, Universal Health Services and Amkor Technology. Before Tuesday’s open, Corning and Boeing were scheduled to begin a week in which 10 portfolio companies tracked by the CNBC Investing Club were set to report.

Other Tuesday morning reports named by CNBC included Coca-Cola, UPS, PayPal, Centene, Pentair and Royal Caribbean. On the economic calendar, the Conference Board’s latest consumer confidence reading was also due Tuesday.

This story draws on original reporting from CNBC.