The S&P 500 Index ($SPX) (SPY) on Monday closed down -0.37%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.29%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.19%. September E-mini S&P futures (ESU26) fell -0.34%, and September E-mini Nasdaq futures (NQU26) fell -0.19%.
Stock indexes gave up an early advance on Monday and settled mixed. Alphabet fell more than -5% to lead megacap technology stocks lower after announcing that Google DeepMind Vice President Jumper is leaving the company to join Anthropic PBC. Also, the weakness in software companies on Monday weighed on the broader market.
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Stocks initially moved higher on Monday, with the Nasdaq 100 posting a 2.5-week high amid strength in chipmakers and AI-infrastructure stocks. Stock index futures had weakened in overnight trade as crude oil prices jumped more than +2% when Iran threatened to suspend talks and close the Strait of Hormuz following Israeli attacks against Hezbollah in Lebanon. Meanwhile, President Trump threatened military action against Iran if Hezbollah militants continue to attack Israel.
However, stock index futures recovered from their worst levels, and crude oil prices gave up their overnight advance and fell more than -2% after Iran said there had been “major progress” in all-night discussions with the US over a peace deal following the interim agreement last week that led to a 60-day ceasefire extension and Iran opening the Strait of Hormuz. Pakistan and Qatar said in a joint statement today that there was “encouraging progress” in talks and that the US and Iran agreed to establish a “high-level committee” to oversee the talks, as well as working groups dealing with nuclear issues and sanctions on Iran. There will also be a de-confliction process to help ensure the cessation of military operations in Lebanon. Losses in crude oil accelerated on Monday when the US authorized a temporary, 60-day license allowing Iran to sell crude oil and petroleum products through August 21.
The British pound is under pressure after Keir Starmer said he would step down as Britain’s prime minister, paving the way for Andy Burnham to succeed him. The markets are awaiting Mr. Burnham’s pick as Chancellor of the Exchequer, on fears that if the new chancellor is not credible, it would raise concerns over deficits and borrowing.
The markets are discounting a 39% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets settled higher on Monday. The Euro Stoxx 50 closed up +0.29%. China’s Shanghai Composite climbed to a 1-month high and closed up +1.78%. Japan’s Nikkei-225 Stock Average rallied to a new all-time high and closed up +1.55%.
Interest Rates
September 10-year T-notes (ZNU6) on Monday closed down -12.5 ticks, and the 10-year T-note yield rose +5.4 bp to 4.507%. Sep T-notes fell to a 1-week low on Monday, and the 10-year T-note yield rose to a 1-week high of 4.513%. T-notes were under pressure due to negative carryover from last Wednesday, when the Fed projected higher interest rates later this year. Also, supply pressures are undercutting T-notes as the Treasury will auction $211 billion of T-notes and floating-rate notes this week, beginning with Tuesday’s $69 billion auction of 2-year T-notes.
European government bond yields are moving lower today. The 10-year German bund yield fell -3.3 bp to 2.952%. The 10-year UK gilt yield fell from a 1-week high of 4.855% and finished down -3.4 bp to 4.808%.
ECB President Christine Lagarde said the ECB doesn’t need to react more forcefully to the Middle East conflict because inflation is set to return to target over the medium term.
Swaps are discounting a 10% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Software stocks moved lower on Monday, weighing on the broader market. Palantir Technologies (PLTR) closed down more than -6%, and Oracle (ORCL) closed down more than -4%. Also, Intuit (INTU), Atlassian Corp (TEAM), Autodesk (ADSK), and Workday (WDAY) closed down more than -3%, and ServiceNow (NOW) closed down more than -2%. In addition, Salesforce (CRM) closed down more than -1%, and Datadog (DDOG) closed down -0.75%.
The Magnificent Seven technology stocks retreated on Monday, weighing on the overall market. Alphabet (GOOGL) closed down more than -5% after announcing that Google DeepMind Vice President Jumper is leaving the company to join Anthropic PBC. Also, Amazon.com (AMZN) closed down more than -4% to lead losers in the Dow Jones Industrials. In addition, Meta Platforms (META) and Microsoft (MSFT) closed down more than -2%, and Nvidia (NVDA) closed down -0.97%. Finally, Apple (AAPL) closed down -0.34%. Tesla (TSLA) bucked the trend and closed up more than +1% after Jeffries raised its price target on the stock to $375 from $350.
Defense companies slid on Monday after Iran said there had been “major progress” in all-night discussions with the US over a peace deal. Lockheed Martin (LMT) closed down more than -3%, and L3Harris Technologies (LHX), Northrop Grumman (NOC), and Huntington Ingalls Industries (HII) closed down more than -2%. Also, General Dynamics (GD) and RTX Corp (RTX) closed down more than -1%.
Chipmakers and AI-infrastructure stocks moved higher on Monday, lending support to the broader market. The iShares Semiconductor ETF (SOXX) rose more than +2% to a new record high. ON Semiconductor (ON) closed up more than +8%, and Micron Technology (MU) closed up more than +6% to lead gainers in the Nasdaq 100. Also, Intel (INTC) and Lam Research (LRCX) closed up more than +5%, and Sandisk (SNDK) closed up more than +4%. In addition, Applied Materials (AMAT), NXP Semiconductors NV (NXPI), and KLA Corp (KLAC) closed up more than +3%, and Advanced Micro Devices (AMD), Microchip Technology (MCHP), Seagate Technology Holdings Plc (STX), Analog Devices (ADI), and Texas Instruments (TXN) closed up more than +2%.
Netflix (NFLX) closed down more than 5% after M Science cautioned about user trends at the company, saying data suggest the weakest global net-add quarter for Netflix since 2022.
Ligand Pharmaceuticals (LGND) closed down more than -4% after announcing its intention to offer $550 million of convertible senior notes due 2031 in a private placement to qualified institutional buyers.
Echostar (SATS) closed down more than -2% after DISH DBS, a subsidiary of Echostar, said its interest payment on notes due June 1 will be delayed.
Definium Therapeutics (DFTX) closed up more than +50% after meeting its primary endpoint in its Phase 3 Emerge study of its DT120 orally disintegrating tablet for adults with major depressive disorder.
Apogee Therapeutics (APGE) closed up more than +46% after AbbVie agreed to buy the company for $10.9 billion.
Baldwin Insurance Group (BWIN) closed up more than +16% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $28.
Super Micro Computer (SMCI) closed up more than +15% to lead gainers in the S&P 500 after GF Securities Co. Ltd upgraded the stock to buy from hold with a price target of $48.
Acrosa (ACA) closed up more than +6% after the Financial Times reported that CRH is nearing a deal to acquire the company.
Incyte (INCY) closed up more than +5% after BMO Capital Markets upgraded the stock to market perform from underperform with a price target of $94.
Fervo Energy (FRVO) closed up more than +3% after agreeing with Pacific Northwest National Laboratory and Nvidia to develop a digital twin platform for Enhanced Geothermal Systems technology.
Earnings Reports(6/23/2026)
Carnival Corp Ltd (CCL), FedEx Corp (FDX), Hub Group Inc (HUBG), KB Home (KBH), Korn Ferry (KFY), Replimune Group Inc (REPL), Worthington Enterprises Inc (WOR), XCF Global Inc (SAFX).
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