United States benchmark averages closed mixed on Monday (Tuesday AEST), with losses in major technology companies dragging the S&P 500 and Nasdaq lower as investors assessed progress in negotiations between the U.S. and Iran and looked ahead to key economic data later this week.
The Dow Jones Industrial Average gained 148.0 points, or 0.3%, to finish at 51,712.7. The S&P 500 fell 27.8 points, or 0.4%, to 7,472.8, while the Nasdaq Composite dropped 351.3 points, or 1.3%, to 26,166.6.
Technology shares were the primary source of weakness. Alphabet declined 5%, while Meta Platforms fell 2.3%, Amazon shed 4.8%, and Microsoft fell 3.2%.
SpaceX slumped 16.4%, marking its largest single-day decline and placing significant pressure on the Nasdaq. Despite the drop, the stock remains above its IPO price of $135 per share.
The Elon Musk-led company also announced its first debt offering on Monday and reported approximately US$100.8 billion in cash and cash equivalents as of 19 June.
Investors are now looking ahead to quarterly earnings from Micron Technology, due on Wednesday (Thursday AEST). Shares in the memory chipmaker have surged nearly 300% this year, making the results a key test for the broader technology-led market rally.
Sentiment was also influenced by developments in the Middle East. Oil prices moved lower after Washington and Tehran agreed on a roadmap aimed at reaching a final agreement within 60 days.
Mediators said U.S. and Iranian officials made "great progress" during the first round of talks in Switzerland, which concluded early on Monday.
However, discussions remain complicated by tensions surrounding Lebanon and the Strait of Hormuz.
Markets also remained focused on the outlook for U.S. monetary policy. Expectations that the Federal Reserve may need to maintain a restrictive stance to combat inflation have pushed Treasury yields higher and weighed on equity valuations.
Attention now turns to Thursday's Personal Consumption Expenditures (PCE) report, the Federal Reserve's preferred measure of inflation.
A stronger-than-expected reading could reinforce expectations of a more hawkish central bank after policymakers reiterated the need to contain inflation at last week's meeting.
According to the CME Group FedWatch Tool, markets are currently pricing in a 52.2% probability of a 25-basis-point interest rate increase at the Federal Reserve's September meeting.
In corporate news, Apogee Therapeutics surged 42.2% after AbbVie announced it would acquire the biotechnology company for $10.9 billion in cash.
Shares of AbbVie rose 6.3% following the announcement.
On the bond markets, U.S. Treasury yields edged higher, with both the 10-year and two-year yields each rising 1.2% to 4.509% and 4.23%, respectively.
