Dow Gains 262 Points as Oil Tumbles; Chip Weakness Keeps Nasdaq in Red

Oil Slide Boosts Dow, but Chip Selloff Caps Gains

US stocks finished mixed on Monday, with a sharp pullback in oil prices helping the Dow Jones Industrial Average advance while technology shares retreated on semiconductor weakness. The Dow added 262 points, or 0.51%, to close at 52,210, paring an earlier gain of as much as 660 points. The S&P 500 eked out a 0.02% rise to 7,413, but the Nasdaq Composite slipped 0.18% to 24,932 as chip stocks weighed.

Crude oil prices tumbled after the US and Iran halted hostilities and President Trump described talks as very friendly, easing fears of a wider Middle East conflict. West Texas Intermediate futures plunged 7.5% to $82.62 a barrel, while Brent crude sank 8.7% below $90 to $88.36. The energy sector fell sharply, with Exxon Mobil down 1.3% and Chevron off 2.4%. In contrast, airline stocks rallied — American Airlines and United Airlines advanced, and Royal Caribbean Cruises jumped 4% — as lower fuel costs brightened the outlook for travel.

The semiconductor space was a notable drag. SanDisk tumbled 11% after China’s ChangXin Memory Technologies debuted on Shanghai’s STAR market with a surge, and SK Hynix’s ADR lost over 7%, erasing earlier gains and dipping below its offering price. Reports that Chinese manufacturers had begun producing immersion deep ultraviolet (DUV) lithography machines sent ASML’s ADR more than 5% lower. Nvidia shed nearly 5%, even as tech heavyweights Alphabet and Microsoft each rose about 2%.

On the economic front, US durable goods orders inched up 0.3% in June, well short of the 1.8% expected gain, while core orders excluding transportation rose 0.6% versus a forecast 0.8%. In fixed income, the yield on the 10-year Treasury note fell 5.3 basis points to 4.624%, and the 2-year yield dipped 4.7 basis points to 4.284%. The dollar index eased 0.35% to 101.116. Gold climbed 1.6% to $4,116 an ounce, with some analysts noting that a meaningful US-Iran resolution could push bullion above the $4,000–$4,200 range.

Earnings season continues to provide support. RBC Capital Markets strategist Lori Calvasina noted that the percentage of S&P 500 companies beating earnings per share estimates rose to 90% from 85% the prior quarter, even though revenue surprises dipped. Morgan Stanley’s Michael Wilson expects investors to rotate into high-quality names with strong free cash flow and margin expansion, and sees the 7,000 level on the S&P 500 as key support should a short-term correction emerge.

Sector Divergence: How Oil, Chips, and Earnings Are Shaping the Market

Oil’s Double-Edged Sword: Energy Sector Pain, Travel Boon

The 7.5% plunge in WTI crude — its biggest one-day drop in months — was a direct response to the cooling of US-Iran tensions. For oil majors like Exxon and Chevron, the immediate impact is a hit to revenue expectations, especially if prices stay below $85. In contrast, airlines and cruise operators are among the clearest beneficiaries: lower jet fuel costs directly improve their bottom lines. United and American Airlines shares rose, and Royal Caribbean’s 4% gain underscores the sector’s sensitivity to energy costs.

Semiconductor Selloff: China’s Growing Chip Ambitions Rattle the Market

Monday’s memory chip rout was fueled by two competitive threats from China. First, ChangXin Memory’s blowout IPO in Shanghai signaled that domestic producers are gaining ground in the memory market, posing a direct challenge to SanDisk and SK Hynix. Second, a report that Chinese firms have started making immersion DUV lithography machines — technology currently dominated by ASML — raised the specter of reduced dependence on Western equipment. Together, these developments highlight a deepening US-China tech rivalry that could reshape the semiconductor supply chain and pressure valuations for some of the sector’s biggest names.

Earnings Strength Offers a Buffer Against Macro Headwinds

Amid the mixed session, the broader market is finding reassurance in earnings quality. The rise in the EPS beat rate to 90%, as pointed out by RBC’s Calvasina, suggests that Corporate America is navigating elevated costs and slowing demand better than feared. Morgan Stanley’s Wilson advises a rotation to quality stocks with strong cash flows and expanding margins, a strategy that could help portfolios weather potential corrections. His call that the S&P 500 has firm support at 7,000 is a reminder that, for now, fundamentals still underpin equity markets.

What the Oil Plunge and Chip Rout Mean for Sector Positioning

• Airlines and cruise operators stand to benefit from lower fuel costs if Brent remains below $90, as seen in United and American Airlines gains and Royal Caribbean’s 4% jump.
• Energy sector caution: The 7.5% drop in WTI crude underscores the vulnerability of oil majors like Exxon and Chevron to geopolitical de-escalation and demand uncertainty.
• Semiconductor volatility ahead: With ChangXin’s IPO and reports of homegrown DUV lithography machines, competitive threats to US and European chip names are intensifying. Investors may reassess growth expectations for companies like SanDisk and ASML.
• Focus on quality earnings: Morgan Stanley’s call for a rotation into high-free-cash-flow and margin-expansion stories, combined with S&P 500 support at 7,000, suggests that stock-picking around resilient earnings profiles could cushion against short-term drawdowns.