US stocks pared early gains and ended Monday’s session mixed as mounting geopolitical tensions offset renewed strength in chipmakers. The S&P 500 and Nasdaq 100 edged higher, while the Dow Jones Industrial Average fell more than 200 points. Long-term Treasury yields climbed after the US and Iran extended strikes on Monday, and Houthi forces warned they would target commercial vessels from Saudi Arabia in the Red Sea. Elevated fuel prices added to pro-inflationary pressures, reinforcing expectations for a potential Federal Reserve rate hike later this year.
Apple and Oracle each fell around 3%, while Morgan Stanley and Goldman Sachs gave up early advances to end more than 1% lower. By contrast, semiconductor stocks advanced as investors weighed whether AI hyperscalers may slow spending on AI infrastructure in the coming quarters. Micron and SanDisk rose about 5%. Alphabet gained 2% ahead of its guidance update on Wednesday, a key indicator for capital expenditures in both chip and software development.