Chip stocks leave the S&P 500 nearly unchanged as most sectors rise
The Nasdaq Composite fell and the Dow Jones Industrial Average rose on Monday, October 12, while oil climbed after attacks in Saudi Arabia.
Key takeaways
The S&P 500 closed at 7,807.24, down 0.06%. The Nasdaq Composite fell 0.44%, to 27,245.90, and the Dow Jones Industrial Average rose 0.38%, to 51,850.55.
Most sectors finished higher on Monday, despite the continued Persian Gulf fighting, though chipmaker stocks dragged the total S&P down slightly.
State Street SPDR S&P 500 ETF SPYfell 0.06%. while the Invesco S&P 500 Equal Weight ETF RSPIt rose 0.06%.
Eight of the 11 State Street sector funds finished higher for the day. State Street Consumer Staples Select Sector SPDR ETF XLP rose 1.2% to its third straight gain.
“Communication services rose 0.9%. Meta Platforms, one of the largest companies in the index, gained 3.4% after launching its Muse AI agent, The Motley Fool reported.
Consumer discretionary (-0.5%), industrials (-0.1%), and technology (-1.2%) all slipped in Monday's Columbus Day trading session.
Energy led and technology lagged as most sectors rose
Semiconductors fell again
The PHLX Semiconductor index fell 2.7%, a fourth straight decline. iShares Semiconductor ETF SOXX fell 2.6% and is down 7.6% over five sessions.
SOXX is down 7.6% over five sessions
NVIDIA, the largest company in the S&P 500, fell 1.3%. Broadcom fell 1.9% and Micron Technology fell 3.9%. Sandisk fell 6.0% and Lumentum Holdings fell 9.8%.
Apple rose 1.3% and Microsoft rose 1.1%. State Street Technology Select Sector SPDR ETF XLK still fell 1.2%.
NVIDIA dragged SPY the most; Apple and Meta led the offset
Oil rose after attacks in Saudi Arabia
The Iran-aligned Houthis claimed responsibility for a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300, Reuters reported. Further attacks followed on Sunday.
By 4:24 p.m. Eastern time on Monday, West Texas Intermediate crude was at $93.24, up 1.5% from Friday's settlement. Brent crude was at $106.09, up 1.3%. Reuters reported that the move took prices to near two-week highs, as Iranian and Houthi attacks on Saudi Arabia overshadowed talk of more Russian diesel reaching the market.
Reuters said the oil price increase was contained after President Donald Trump said on Sunday that Ukraine and Russia had agreed to halt attacks on each other's energy facilities, following a US diesel-supply deal with Moscow. The details were not clear, Reuters said. Ukrainian President Volodymyr Zelenskiy accused Russia on Monday of violating the halt, and Russia did not comment, Reuters reported.
State Street Energy Select Sector SPDR ETF XLE rose 1.4%, the best of the 11 sector funds, and is up 4.1% over five sessions. ExxonMobil and Chevron, its two largest holdings, rose 1.9% and 1.4%.
The bond market was closed
The Treasury market was closed for Columbus Day. The 10-year yield was 5.24% at Friday's close, the last reading. SPY traded 0.41 times its median volume of the prior 20 sessions, among its lightest in that stretch.
JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo report Tuesday. Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York, told Reuters that investors were cautious with no direction from bonds.
"We're also waiting on earnings and that's significant," he said. "The four large banks reporting on Tuesday can have a big impact."
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Frequently asked questions
Why was the S&P 500 nearly unchanged if most sectors rose?
Chip stocks fell hard enough to offset those gains, and the S&P 500 closed down 0.06%.
How much did semiconductor stocks fall?
The PHLX Semiconductor index fell 2.7% for a fourth straight decline, and iShares Semiconductor ETF fell 2.6%.
Which sectors fell?
Consumer discretionary fell 0.5%, industrials fell 0.1%, and technology was the other sector that fell.
Why did oil rise?
West Texas Intermediate rose 1.5% to $93.24 after attacks in Saudi Arabia, which Reuters said took prices near two-week highs.
