Dow rises 140 points as S&P 500 falls on tech losses, Iran talks and PCE watch

• Big tech dragged indexes lower: Alphabet fell 5% on AI talent departure concerns, while Amazon, Meta, and Microsoft declined 2-4%; SpaceX dropped 14% after announcing its first debt offering
• Oil prices fell sharply (Brent -3.31% to $77.90, WTI -2.32% to $74.82) after US-Iran officials agreed on a 60-day roadmap for a final deal and the US authorized Iranian oil sales
• Markets now pricing in a 25-basis-point Fed rate hike in September, with focus shifting to Thursday's PCE inflation data that could influence the central bank's hawkish policy path

Market Summary: Dow Rises as Tech Weakness Pressures Broader Indexes

Key Market Movements:

The Dow Jones Industrial Average gained 147 points (+0.3%) on Monday, while the S&P 500 fell 0.4% and the Nasdaq Composite dropped 1.3%. The divergence was driven by sharp losses in megacap technology stocks offset by gains in healthcare and industrials.

Major Movers:

Alphabet tumbled 5% on concerns over AI talent departures, while Amazon, Meta Platforms, and Microsoft declined 4%, 2%, and 2% respectively. SpaceX plunged 14% after launching its first debt offering and disclosing $100.8 billion in cash holdings.

Semiconductor stocks bucked the trend, with Micron Technology surging 5% ahead of Wednesday earnings, Intel rising 5%, and AMD gaining 1%. Apogee Therapeutics jumped following AbbVie's $10.9 billion cash acquisition announcement.

Energy Market Impact:

Oil prices fell sharply after US-Iran negotiations showed progress, with mediators announcing a 60-day roadmap toward a final deal. Brent crude dropped 3.31% to $77.90/barrel, while WTI declined 2.32% to $74.82. The US Treasury also authorized Iranian oil sales for 60 days, adding downward pressure.

Fed Policy Focus:

Markets await Thursday's PCE inflation data—the Federal Reserve's preferred gauge. Economists expect core PCE to rise from April levels. Following last week's hawkish Fed meeting, traders are pricing in a 25-basis-point rate hike as soon as September, with expectations shifting toward potential October action.

Market Implications:

Concerns are mounting around elevated AI infrastructure spending by hyperscalers, weighing on tech valuations despite recent AI-driven gains. The upcoming PCE data could significantly influence Fed policy trajectory and market direction.