Tech stocks kicked off the week on a negative note, with concerns about weaker-than-expected demand for Apple Inc.’s latest iPhone 16 models driving the decline. Apple shares tumbled over 3% by midday in New York, marking their worst session in over a month. This sell-off in Apple rippled through the tech sector, pulling down chip stocks as well. Arm Holdings plc, a major player in the chip design space, plunged more than 5%. The broader semiconductor sector, tracked by the iShares Semiconductor ETF (SOXX), declined by 2.2%, reflecting a widespread sense of unease within the industry.
Despite the slump in tech, the broader market showed mixed signals. The S&P 500 edged lower, while the Dow Jones and the Russell 2000 bucked the trend, posting modest gains for the day. Bonds outperformed equities as Treasury yields dropped, fueled by growing expectations of Federal Reserve rate cuts. Over the weekend, investor sentiment shifted toward a rate cut at the upcoming September 18 meeting, with markets now pricing in a 60% probability of a larger 50-basis-point reduction.
Gold prices continued their upward climb, rising 0.3% to reach new record highs, marking the third consecutive session of increases. In the energy market, oil prices climbed 0.7%, and natural gas prices surged 4% on a more optimistic demand outlook. Bitcoin, however, wasn’t spared from the tech sell-off, falling 2.5%.
Here’s a snapshot of major indices and their 1-day percentage changes:
*
Dow Jones:
41,490.08 (+0.2%)*
Russell 2000:
2,192.30 (+0.2%)*
S&P 500:
5,621.31 (-0.1%)*
Nasdaq 100:
19,377.78 (-0.7%)Looking at the performance of major ETFs:
*
SPDR S&P 500 ETF Trust (SPY):
-0.1% at $561.66*
SPDR Dow Jones Industrial Average (DIA):
+0.4% at $416.43*
Invesco QQQ Trust Series (QQQ):
-0.8% at $471.63*
iShares Russell 2000 ETF (IWM):
+0.2% at $217.28*
Financials Select Sector SPDR Fund (XLF):
+1.2%*
Technology Select Sector SPDR Fund (XLK):
-0.7%Oracle Corp. (ORCL) jumped 6% after multiple analysts raised their price targets for the stock. Lattice Semiconductor Corp. (LSCC) surged over 11% following the appointment of its new CEO, Ford Tamer.
Other notable chipmakers that declined on Monday included Micron Technology Inc. (MU), down 5.3%; Wolfspeed Inc. (WOLF), down 9%; and Qorvo Inc. (QRVO), which slid 7%. Nvidia Corp. (NVDA) was 2% lower.
