Wall Street closed lower on Monday as renewed U.S. airstrikes against Iran and rising Treasury yields overshadowed an early-session rebound in chip and technology stocks. All three major indexes had traded in positive territory for much of the day before fading into the close, with the Dow Jones Industrial Average bearing the brunt of the selling. Investors are heading into a heavy week of corporate earnings, with Tesla, Alphabet, and Intel all set to report, while geopolitical headlines out of the Middle East continued to drive volatility.
What Moved Markets
The Dow Jones Industrial Average fell 307.10 points, or 0.59%, to close at 51,839.32. The S&P 500 slipped 14.38 points, or 0.19%, to finish at 7,443.31. The Nasdaq Composite was roughly flat, down 12.17 points, or 0.05%, to 25,508.07. The small-cap Russell 2000 also lagged, falling 0.39%.
The pullback came after U.S. Central Command confirmed a new round of strikes against Iran late in the trading day, marking the ninth consecutive night of attacks and following the deaths of additional American service members over the weekend. Yemen’s Houthi movement separately declared a “maritime embargo” against Saudi Arabia, adding another layer of risk to energy markets even as crude oil prices stayed well below their recent highs, with U.S. crude settling near $82 a barrel. Rising Treasury yields also weighed on blue-chip and industrial names late in the session, pulling the Dow into its worst showing of the day right as trading wrapped up.
Earlier in the session, chip and Big Tech stocks had staged a partial recovery from last week’s sharp sell-off, helping the Nasdaq and S&P 500 hold up better than the Dow. Taiwan Semiconductor’s announcement of an additional $100 billion investment in its Arizona manufacturing footprint added to the more upbeat mood around the AI supply chain.
Notable Movers
AMC Entertainment (AMC) was one of the day’s biggest gainers, surging as much as 17% intraday and closing sharply higher after the movie theater chain topped Wall Street’s second-quarter estimates, with revenue up 14.2% year over year to $1.60 billion.
Warner Bros. Discovery (WBD) fell 1.7% and Paramount Skydance (PSKY) dropped 1.1% after a federal judge sided with a coalition of states and temporarily paused Paramount Skydance’s proposed $110 billion takeover of Warner Bros. Discovery on antitrust grounds, ordering a 14-day hold before the deal can close.
Alphabet (GOOGL) rose 2.9% following reports the company is developing a new AI server chip, adding to optimism ahead of its earnings report later this week.
Advanced Micro Devices (AMD) climbed after Microsoft said it would use AMD’s Helios systems to expand its Azure AI data centers, a deal that also included new AMD-powered computing instances for Microsoft’s cloud customers.
Defense and aerospace names drew renewed interest after Lockheed Martin moved to build a more affordable version of its Patriot missile system for European customers, with partners such as General Motors helping speed up prototyping and local manufacturing.
Looking Ahead
Investors will spend the rest of the week digesting a dense earnings calendar, with Tesla and Alphabet reporting Wednesday and Intel expected to post its first profitable quarter in over a year. More than 86% of S&P 500 companies that have reported so far this season have beaten expectations, but analysts caution that investors are focused less on beats and more on guidance and capital spending plans, particularly from AI-related businesses. Developments in the Iran conflict, including any progress toward renewed negotiations, will also remain a key swing factor for oil prices and broader market sentiment in the days ahead.