Dow up 147 pts as megacap tech, SpaceX hit; PCE in focus

On Monday the Dow Jones Industrial Average rose 147 points, or 0.3%, while the S&P 500 fell 0.4% and the Nasdaq Composite declined 1.3%, as losses in large technology stocks and a sharp drop in SpaceX weighed on broader markets.

Alphabet slid about 5% amid concerns over departures of artificial intelligence staff, Amazon fell roughly 4%, Meta Platforms declined around 2% and Microsoft eased near 2%, pushing the S&P and Nasdaq lower. Semiconductor names provided some offset: Micron Technology gained 5% ahead of quarterly results due Wednesday, Advanced Micro Devices rose about 1% and Intel added roughly 5%.

SpaceX shares plunged about 14%, extending a three-session losing streak after the company launched its first debt offering and disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. The drop in SpaceX was among the largest moves of the day and weighed on growth-oriented stocks.

Outside big-cap tech, Apogee Therapeutics surged after AbbVie outlined a $10.9 billion cash acquisition of the biotech company. The takeover offer was a notable mover for individual equities.

Energy markets eased after mediators from Qatar and Pakistan indicated US and Iranian officials had agreed on a roadmap to reach a final deal within 60 days. Brent crude for August fell 3.31% to $77.90 a barrel, and West Texas Intermediate declined 2.32% to $74.82. Oil prices were also pressured after the US Treasury authorized the sale of Iranian oil for 60 days.

Investors are focused on Thursday’s personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge. Economists surveyed by FactSet expect core PCE to rise from April levels. Recent Federal Reserve commentary stressed the need to curb inflation, and market data from LSEG show traders are pricing in a 25-basis-point move in September as a possible outcome and a further rate change as soon as October.

With corporate earnings and the PCE report on the calendar this week, market participants entered Tuesday with a cautious tone and indexes diverged in performance.