S&P Dips into Red Despite Iran War Pause
July 27,2026 12:15 PM EST
The S&P 500 plunged into the red on Monday as chip stocks slid, even as the market positively reacted to a pause in fighting between the U.S. and Iran over the weekend.
The Dow Jones Industrials were still ahead 82.74 points to 52,029.99.
The much-broader index went south 14.04 points to 7,397.94
The NASDAQ Composite gave back 101.26 points to 24,874.57.
Semiconductor stocks were down broadly. AMD and Teradyne dropped about 8% each to lead the declines. Micron Technology shed roughly 5%.
U.S.-listed shares of ASML, the dominant player in the space, fell more than 7% on the back of the report.
The week ahead will have no shortage of challenges for the major averages. A succession of quarterly reports from Amazon, Apple, Meta Platforms and Microsoft will either soothe investor fears of rampant artificial intelligence spending, or add to them, after Alphabet’s disappointing results in the last week.
The results could directly affect semiconductor companies that are the chief beneficiaries of the AI spending spree.
The Fed will make its latest decision on interest rates on Wednesday. The consensus view is that the central bank will hike rates in September, but markets are pricing in the meaningful possibility that the Fed will lift its benchmark borrowing rate a quarter percentage point as soon as this week.
Prices for the 10-year Treasury hiked, lowering yields from 4.67% to 4.65%. Treasury prices and yields move in opposite directions.
Oil prices slid $6.22 to $83.09 U.S. a barrel.
Gold prices tacked on $9.20 to $4,080 U.S. an ounce.
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