The New York stock market closed mixed on June 22, as international oil prices fell following progress in negotiations for a peace agreement between the U.S. and Iran, but major technology stocks struggled, leading to declines in the S&P 500 and Nasdaq indices.
The Dow Jones Industrial Average finished up 0.3% at 51,712.71. In contrast, the S&P 500 dropped 0.4% to close at 7,472.79, while the tech-heavy Nasdaq composite fell 1.3% to 26,166.60. The Russell 2000 index, which tracks small-cap stocks, rose 0.8% to 3,004.40.
Market sentiment reflected a combination of factors, including advancements in U.S.-Iran negotiations, declining oil prices, rising U.S. Treasury yields, and weakness in large tech stocks. Following a high-level meeting in Switzerland to discuss the implementation of a memorandum of understanding (MOU) for peace, expectations for progress in negotiations increased, leading to a drop in oil prices. West Texas Intermediate (WTI) crude fell below $74 per barrel.
The decline in oil prices is seen as a positive development for the market, as it could alleviate inflationary pressures. However, concerns about the Federal Reserve's hawkish stance have pushed Treasury yields higher, creating headwinds for the overall stock market. Investors are closely watching the upcoming Personal Consumption Expenditures (PCE) price index, a key inflation measure favored by the Fed, which is expected to influence future interest rate decisions.
Sector performance was mixed. The Dow benefited from gains in healthcare and industrial stocks, while the S&P 500 and Nasdaq were weighed down by underperformance in large tech stocks. Major tech companies, including Alphabet, Meta, Amazon, and Microsoft, showed weakness, dampening investor sentiment in the sector.
Concerns about infrastructure spending burdens related to increased investments in artificial intelligence (AI) also contributed to market caution. While AI optimism has driven recent stock market gains, worries about large-scale capital expenditures and profitability challenges for cloud and semiconductor companies are growing.
Among individual stocks, AbbVie attracted attention with news of its acquisition of Apogee Therapeutics for approximately $10.9 billion. Shares of Apogee surged, and AbbVie also saw an increase.
Market focus is shifting to Micron's earnings report and the PCE inflation data this week. Micron's results are expected to provide insight into the strength of AI semiconductor demand, while the PCE data will serve as a benchmark for assessing the likelihood of further interest rate hikes by the Fed.
* This article has been translated by AI.
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