Wall Street Mixed, Tech Down Amid Iran Watch
US stocks closed mixed on Monday (May 18) in volatile trading, as investors continued to monitor developments in the Middle East conflict and assess the chances of a US-Iran deal. The S&P 500 edged down 0.1%, the Nasdaq fell 0.5%, while the Dow Jones Industrial Average rose 160 points, reflecting ongoing sectoral rotation.
The main pressure came from the technology sector, which was the worst performer of the session. Meanwhile, energy, consumer staples, and financial stocks posted solid gains, in line with persistently high energy prices and investors' preference for defensive and value sectors during times of heightened volatility.
At the stock level, Seagate plunged nearly 7% after the company's CEO said at a JPMorgan conference that building a new factory would "take too long." These comments fueled concerns about production capacity in the technology supply chain, particularly amid a surge in demand related to infrastructure spending.
Negative sentiment spread to the chipmaker group, with Micron Technology falling 6%. Investors believe the memory chip industry could face capacity constraints to meet rising demand, adding pressure on technology stocks, which previously fueled the rally.
The market is now awaiting clearer signals regarding the direction of the US-Iran conflict, which will affect energy and inflation, as well as how the technology sector will evolve amidst capacity investment needs and expected demand growth.
Source: Newsmaker.id
