U.S. stocks slipped on Monday, with the S&P 500 falling 0.3% and the Nasdaq 100 dropping 0.1%. The decline came even though key chipmakers like Intel and Micron posted gains.
The market’s pullback was driven by higher long‑term Treasury yields. The 10‑year yield edged up to 4.72%, adding pressure on equity valuations.
Oil prices added to the mix, with Brent crude climbing to $90 a barrel. The rise in energy costs added to investor caution.
Traders also watched fresh Middle East flareups. Fighting between Israel and Hezbollah in Lebanon intensified, and President Trump warned Oman could face bombing if it joined the conflict.
Matt Maley, chief market strategist at Miller Tabak + Co, said the situation in the Middle East is unsettling and that the 10‑year yield’s rise above 4.7% is creating headwinds for investors.
Tech stocks received a lift after a report revealed Anthropic’s second‑quarter revenue jumped 14‑fold from a year earlier, reaching over $11.5 billion. The company also posted positive adjusted operating income, boosting sentiment around AI.
The Philadelphia Semiconductor Index, which tracks chipmakers, rose 2.3% as the sector benefited from the AI news.
The release of the Federal Reserve’s latest meeting minutes may provide new clues for investors. JPMorgan strategists noted that the minutes could help traders better understand the Fed’s stance in a lower‑communication environment.
Retail earnings from Walmart, Home Depot and Target will be closely watched, especially after U.S. retail sales fell the most in more than a year last week. Lori Calvasina of RBC Capital Markets highlighted that consumer resilience appears shaky, adding another layer of uncertainty.
The Cboe Volatility Index climbed above 15 after hitting its lowest level of 2026, indicating a lower likelihood of rate hikes this year. In single‑stock moves, Nike fell 4.3% after UBS said brand momentum remains elusive, and L3Harris Technologies slid 3.8% following a CEO replacement.