Dow Ends Higher For Third Straight Session As Oil Cools, Nasdaq Slides On Chipmaker Rout — PYPL, SPCX, AAPL, V, F Stocks In Focus

• The S&P 500 ended 0.2% higher, while the Nasdaq 100 slipped 1% and the Dow Jones Industrial Average added 1%.
• Brent crude prices dropped close to 5% to end at $84.09.
• Coca-Cola Co. raised its full-year outlook, strengthened by FIFA sales. 

The S&P 500 ended 0.2% higher, while the Nasdaq 100 slipped 1% and the Dow Jones Industrial Average added 1%. The Russell 2000, which tracks stocks with small market capitalizations, rose 0.2%.

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) added 0.3% and Invesco QQQ Trust (QQQ) ended Tuesday 0.7% lower, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 1%.

Meanwhile, the VanEck Semiconductor ETF (SMH) fell 3.3%, down for the fourth straight session, pulled down by weakness in AMD (AMD), Broadcom (AVGO) and Micron Tech (MU). The broader Vanguard Information Technology ETF (VGT) fell 1.1%, tracking weakness in Tesla (TSLA) and Amazon (AMZN).

Retail sentiment on Stocktwits for QQQ dropped to the ‘extremely bearish’ zone, while sentiment for SPY was ‘bearish’ and ‘neutral’ for the DIA with ‘high’ message volumes.

US Market Drivers

The Philadelphia Semiconductor Index (SOX) is heading to its worst month since 2002 as investors continue to rotate out of chipmaker stocks over rising concerns of the sustainability of the AI boom. 

“We maintain a constructive outlook on semis amid robust AI demand, but we believe the recent divergence in sector performance is in line with our view that there are more ways to participate in potential market gains than through a narrow set of AI-linked stocks,” said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office to Bloomberg in an interview.

Moreover, West Texas Intermediate crude futures fell about 4% to $79.26 per barrel and international Brent crude shed 4.8% to end at $84.09, supporting the broader S&P500 and the Dow Jones. 

Tech earnings remain in focus this week as investors await results from Amazon, Apple, Meta Platforms and Microsoft. Traders are also watching Wednesday's Federal Reserve rate decision for further clues on the interest rate outlook.

The CME FedWatch Tool indicated a 25-basis-point interest rate increase in September. Market participants anticipate that the central bank will keep rates unchanged for now, though they will be looking for increased transparency regarding the subsequent direction of monetary policy.

Trending Stocks To Watch 

PayPal (PYPL): The company reported a beat-and-raise second quarter. Wall Street analysts remained focused on PayPal’s ongoing transformation strategy and said a near-term buyout is unlikely.

SpaceX (SPCX): In a major bid to accelerate American dominance in the commercial space sector, the Trump administration announced a proposal allowing the Federal Aviation Administration (FAA) to bypass lengthy environmental reviews for rocket launches, spacecraft reentries, and commercial launch site approvals. 

Apple (AAPL): Apple Inc. on Tuesday became the second company in the world to top $5 trillion in market capitalization, a day after overtaking Nvidia Corp. (NVDA) to become the most valuable company. 

Visa (V): Payments giant Visa (V) is reportedly planning to cut 2,600 jobs, which is around 7% of its workforce, as part of a broader restructuring effort. 

Ford (F): The automaker reported better-than-expected adjusted second-quarter earnings and raised its full-year 2026 financial guidance. 

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