Stocks slip as Big Tech drags Wall Street lower while oil eases and rate hike bets rise

U.S. markets ended mixed with the S&P 500 and Nasdaq falling on tech weakness, even as the Dow gained. Oil prices eased after U.S.?Iran talks, but rising Treasury yields and stronger Fed rate hike expectations pressured sentiment globally. Asian and

U.S. stocks drifted through a mixed day of trading on Monday after oil prices eased and falling Big Tech stocks weighed on Wall Street.

The S&P 500 slipped 0.4% coming off its 11th winning week in the last 12, and pulled 1.8% below its all-time high set early this month. The Dow Jones Industrial Average added 148 points (0.3%) and the Nasdaq composite slumped 1.3%.

In the oil market, prices fell following talks over the weekend between the United States and Iran on their war. U.S. Vice President JD Vance said they created a ?good foundation for a successful final deal.? An end to the war could clear the Strait of Hormuz for oil tankers and allow for the undisputed resumption of deliveries from the Persian Gulf. Iran?s military had said Saturday that it closed the Strait of Hormuz again, though U.S. Central Command has disputed that.

Traders are betting on a nearly 90% chance the Fed will raise its federal funds rate at least once by the end of the year, with a small minority calling for four increases. That?s up from the 57% chance seen just a week ago, according to data from CME Group.

SpaceX fell 16.4% to $154.60. It?s the third straight drop for the company behind xAI since a big three-day run following its ballyhooed debut on the U.S. stock market when it initially sold its stock at $135 per share. The day?s heaviest weights on the S&P 500 included drops of 5% for Alphabet, 4.7% for Amazon and 4.5% for Broadcom. AbbVie climbed 6.2% after saying it agreed to buy Apogee Therapeutics and its potential treatments for patients with dermatologic, respiratory and other related inflammatory and immunological diseases. Apogee Therapeutics soared 46.7% following the announcement of the deal, valued at roughly $10.9 billion.

In stock markets abroad, the United Kingdom?s FTSE 100 rose 0.7% after Keir Starmer said he was stepping down as leader of the governing Labour Party and will leave office within weeks. In Asia, Tokyo?s Nikkei 225 jumped 1.5% and ended at another all-time high, led by AI stocks. South Korea?s Kospi rose 0.7% to its own record, helped by AI-related companies.

The yield on the 10-year Treasury climbed to 4.50% from 4.46% late Thursday and from just 3.97% before the war. High yields in bond markets worldwide caused by worries about inflation are threatening to slow economies, and they have already sent rates higher for mortgages and other kinds of loans. High yields also hurt prices for investments, particularly those seen as the most expensive. That raises the pressure on companies whose stock prices have soared in the mania around artificial-intelligence technology.

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