Dow drops 300 points as chip rally fades ahead of Big Tech earnings

4:20pm: Early rally fades

US stocks finished mixed on Monday as an early rally lost steam, with investors taking some profits in semiconductor stocks ahead of a pivotal week of Big Tech earnings while keeping a close eye on another jump in oil prices.

The Dow Jones Industrial Average led the declines, falling 307 points, or 0.6%, to close at 51,839. The S&P 500 slipped 14 points, or 0.2%, to 7,443, while the Nasdaq managed to hold near the flatline, edging down just 12 points, or 0.05%, to 25,508.

Chipmakers, which helped fuel the market's recent advance, gave back much of their earlier gains as traders turned cautious before earnings from technology heavyweights later this week. Results from Tesla and Alphabet are expected to set the tone for the broader sector, with investors looking for signs that spending on artificial intelligence remains strong.

Oil prices also stayed in focus after briefly climbing above US$90 a barrel during the session before pulling back, adding another layer of uncertainty for markets already weighing the outlook for inflation and interest rates.

Attention now shifts to another busy day of corporate earnings on Tuesday, with reports due before the opening bell from industrial giant 3M, automaker General Motors, financial services firm Charles Schwab and oilfield services company Halliburton.

3:45pm: Proactive news headlines

• Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) secured a $15 million strategic investment from SRC Agrominerals to expand its Beiseker fertilizer facility and secure a long-term supply of carbonatite for its regenerative fertilizer products.
• VivoPower PLC (NASDAQ:VIVO, FRA:51J) appointed Syed Muhammad Nouman as Group Finance Director, with additional responsibilities as its Principal Financial Officer and Principal Accounting Officer for SEC reporting.
• Thistle Resources (TSX-V:TRCG, OTC:TRCGF) has launched its 2026 trenching program at the Brunswick antimony project in New Brunswick to further define mineralization across key target areas.
• Varon Corp (OTCID:OZSC) said its BALLISLIFE Drink joint venture served as the presenting hydration partner for Ballislife's inaugural 1v1 Championship in Las Vegas, expanding the brand's presence through live basketball events.
• EDM Resources Inc (TSX-V:EDM, OTC:SWNLF) received amended environmental approval for its Scotia Mine in Nova Scotia, allowing the company to move forward with its updated mine plan and processing facility ahead of a planned restart.
• OKYO Pharma Ltd (NASDAQ:OKYO) filed its annual report for fiscal 2026, highlighting its financial position and progress toward a planned Phase 3 trial of its lead drug candidate.

2:40pm: Market movers

• Hut 8 Mining Corp (TSX:HUT) shares jumped nearly 12% after the company signed a 15-year lease for 352 MW at its Beacon Point AI data center campus, fully commercializing the 1-gigawatt Texas facility and lifting its contracted portfolio.
• Tempus AI agreed to acquire Personalis in a $1.5 billion all-stock deal, strengthening its position in cancer recurrence testing by offering Personalis shareholders $16.25 per share.
• AMC Entertainment Holdings (NYSE:AMC) shares gained 11% after the theater chain posted better-than-expected second-quarter results, fueled by strong demand for summer blockbuster films.
• Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) secured a $15 million strategic investment from SRC Agrominerals to expand its Beiseker fertilizer facility and secure a long-term supply of carbonatite for its regenerative fertilizer products.
• Domino's Pizza Inc (NYSE:DPZ) shares rose about 3% after the company reported second-quarter revenue that beat expectations, despite earnings coming in below forecasts, as order growth and global store expansion remained strong.

1:25pm: Market breadth improves

Market breadth continues to improve, even if it has pulled back lately, according to Adam Turnquist, Chief Technical Strategist for LPL Financial.

"The percentage of S&P 500 constituents trading above their 200-day moving average has increased from the low-50% range in May to nearly 70%, signaling that participation beneath the surface remains considerably healthier than it was just a few months ago," Turnquist noted.

"A decisive move back above 7,578 would put the 7,600 milestone, the closing high of 7,610, and the intraday high of 7,621 back into focus."

12:10pm: Fresh attacks rattle markets

Further US strikes against Iran are keeping markets on edge, according to Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

“The tone for the week has already been set as the US and Iran continue to trade strikes. And now a second waterway closure looms to cause further problems for global markets," Beauchamp commented. 

"While some hints of a return to negotiations helped to continue Friday’s late rally, this has begun to stumble as news of fresh attacks filters through. The next two weeks will be a tussle between conflict news and big-name earnings, and the tug of war between these two is likely to keep volatility elevated.”

11:05am: Week ahead

Wall Street heads into a pivotal week with investors preparing for a flood of corporate earnings, major artificial intelligence announcements and lingering geopolitical tensions that have pushed oil prices above $90 a barrel.

The spotlight will be on Wednesday's earnings from Alphabet Inc (NASDAQ:GOOG) (Alphabet Inc (NASDAQ:GOOG)) and Tesla Inc (NASDAQ:TSLA) (Tesla Inc (NASDAQ:TSLA)), which many see as a crucial test for the AI-driven rally after last week's sharp selloff in technology stocks.

More than 70 S&P 500 companies are due to report over the coming days, including Texas Instruments Inc (NASDAQ:TXN) (Texas Instruments Inc (NASDAQ:TXN)), International Business Machines Corp (NYSE:IBM) (International Business Machines Corp (NYSE:IBM)), AT&T Inc (NYSE:T, XETRA:SOBA) (AT&T Inc (NYSE:T, XETRA:SOBA), AT&T Inc (NYSE:T, XETRA:SOBA)) on Wednesday, Intel Corp (NASDAQ:INTC, XETRA:INL) (Intel Corp (NASDAQ:INTC, XETRA:INL), Intel Corp (NASDAQ:INTC, XETRA:INL)), T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5) (T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5), T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5)), Lockheed Martin and Comcast on Thursday, and American Express and Verizon on Friday. Earlier in the week, General Motors, Charles Schwab, Capital One and Danaher will also release results.

Tesla will also be closely watched after reporting record second-quarter vehicle deliveries, with investors looking for updates on cash flow, margins and any news surrounding its autonomous vehicle plans.

10:00am: Semiconductors lift Nasdaq

Stocks opened higher on Monday, with technology shares leading the way as investors looked ahead to a busy week of corporate earnings from some of the market's biggest names.

Shortly after the opening bell, the Nasdaq was up 282 points, or 1.1%, to 25,802. The S&P 500 gained 53 points, or 0.7%, to 7,511, while the Dow Jones added 154 points, or 0.3%, to 52,300.

Semiconductor stocks helped power the early gains as traders positioned themselves ahead of quarterly results from several major technology companies. The second-quarter earnings season shifts into a higher gear this week, with Tesla, Alphabet and IBM scheduled to report on Wednesday, followed by Intel on Thursday.

Energy markets also remained in focus. Brent crude climbed back above US$90 a barrel as fighting between the United States and Iran continued, although prices eased from their highs after Iran's foreign ministry said diplomatic efforts were still underway.

On the corporate front, Domino's Pizza was among the early winners after the company released quarterly earnings before the market opened.

Investors will also be watching fresh economic data, with the June US Leading Economic Index due later this morning, for further clues about the strength of the economy.

7:45am: Big week of earnings

US stock futures pointed higher on Monday as attention turned to a bumper week of Big Tech earnings, even with the US-Iran conflict grinding into its tenth day.

Dow futures edged up 0.2%, S&P 500 contracts added 0.3%, and the Nasdaq-100 popped 0.7%, a welcome bounce after a bruising week for semiconductor stocks.

The AI trade is hunting for its next catalyst, and it may well arrive this week with results due from Alphabet, Tesla, Intel and IBM.

Wall Street has raised the bar for all four, with investors wanting proof that the vast sums being poured into AI infrastructure are actually starting to generate revenue.

The mood was helped by oil pulling back from its highs.

Brent briefly crossed $91 a barrel overnight before retreating to around $86.70, down 1.6%, after Iran signalled that diplomatic channels with Washington remain open via mediators in Pakistan and Qatar.

That said, the conflict itself shows little sign of easing, with US airstrikes continuing and Iranian retaliation killing at least three American service members over the weekend.

Traffic through the Strait of Hormuz hit a three-week low on Friday, and US gasoline prices crossed $4 a gallon again, an unwelcome development three months out from the midterms.