US stocks closed mostly higher on Monday as sharply lower oil prices eased inflation concerns, but losses in semiconductor companies weighed on the Nasdaq. European markets also ended the day in positive territory.
The Dow Jones Industrial Average rose 262.83 points to close at 52,210.08.
The S&P 500 edged up 1.20 points to 7,413.18.
The Nasdaq Composite fell 0.18%, losing 43.74 points to close at 24,932.08, as semiconductor stocks declined. Shares of AMD dropped 5.2%, Teradyne fell 4.3%, Micron Technology lost about 2.3%, and US-listed shares of ASML plunged 5.8%.
Crude oil prices fell sharply after the US and Iran paused attacks, raising expectations of a diplomatic resolution and easing concerns over energy supply disruptions. Brent crude futures dropped around 11% to about $87.60 per barrel, while West Texas Intermediate settled 9.8% lower at $81.65 per barrel.
The decline in oil prices supported consumer staples and other sectors sensitive to energy costs. However, technology shares remained under pressure amid worries about intensifying competition in the semiconductor industry.
China had begun developing deep ultraviolet lithography machines used in semiconductor production.
The report heightened concerns that Chinese manufacturers could reduce their dependence on foreign chipmaking equipment, increasing competitive pressure on established global suppliers. Investor sentiment was also affected by Chinese memory-chip producer CXMT’s initial public offering on the Shanghai Stock Exchange.
Markets are now focused on quarterly earnings reports from major US technology companies including Amazon, Apple, Meta Platforms and Microsoft. The results are expected to provide further indications about AI-related spending, especially after Alphabet’s latest earnings raised concerns about the scale and profitability of AI infrastructure investments. Investors are also awaiting the US Federal Reserve’s interest rate decision on Wednesday.
In economic data, US durable goods orders rose less than expected in June, up 0.3% month-on-month, or $1.1 billion, to $334.8 billion.
The pan-European Stoxx 600 edged up to 644.62 points.
European stock markets also closed higher on Monday. The UK’s FTSE 100 gained 0.42% to 10,781.75 points, Germany’s DAX 40 rose 1.04% to 25,361.03 points, France’s CAC 40 increased 0.40% to 8,406.06 points, Italy’s FTSE MIB advanced 0.49% to 52,054.95 points, and Spain's IBEX 35 rose 0.80% to 19,741.30 points.