Dow Edges Up as Oil Drops on Iran Pause; Nasdaq Slips
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- The Dow held a gain of roughly 260 points after briefly surging 600 points earlier in the session, while the S&P 500 and Nasdaq turned negative in afternoon trading.
- Oil prices posted their largest one-day decline in two months after the U.S. and Iran halted strikes, pulling crude lower and easing inflation fears.
- Treasury yields slipped as the oil retreat reduced fears the Federal Reserve would need to raise rates, with investors now focused on Wednesday's interest-rate decision.
- Airline stocks rallied on cheaper fuel, while broader tech names surged earlier in a session MarketWatch described as the end of a "rough July."
- SpaceX shares hit a new post-IPO low during Monday's mixed session.
- Vanguard said the tech rotation hinges on what goes into the AI build-out, framing sector leadership as dependent on AI capex commitments.
- Celestica headlines Monday's earnings slate as traders look toward big-tech results later in the week.
Why it matters: With the Fed's Wednesday decision and major tech earnings looming, Monday's session showed markets willing to cheer the Iran-strike pause and cheaper oil — but the Dow's fade from a 600-point surge to roughly 260 points signals fading conviction that the relief rally holds without the Fed delivering, while the Treasury market is separately warning Fed Chair Kevin Warsh about rates.
