S&P 500, Nasdaq 100 End Lower On Chipmaker Weakness, While Salesforce Gains Aid Dow — META, MSFT, BMBL, CRM, SNAP In Focus

• The S&P 500 ended Monday 0.1% lower, the Nasdaq 100 fell 0.7%, and the Dow Jones Industrial Average added 0.4%.
• Salesforce earned a double upgrade from Bank of America (BofA).
• Meta launched its newest AI model on Monday.

The S&P 500 and Nasdaq 100 ended lower on Monday, pulled down by weakness in chipmaker stocks as investors prepare for earnings season, which begins with banking results for the quarter ending September. 

The S&P 500 ended Monday 0.1% lower, the Nasdaq 100 fell 0.7%, and the Dow Jones Industrial Average added 0.4%. The Russell 2000, which tracks small-cap stocks, ended 0.5% lower.

The SPDR S&P 500 ETF (SPY) fell 0.1%, the SPDR Dow Jones Industrial Average ETF (DIA) added 0.4%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) eased 0.8%. 

Meanwhile, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) fell 2.5% to 3%, tracking weakness in Nvidia (NVDA), Advanced Micro Devices (AMD), Intel (INTC), and Micron Tech (MU). The broader Vanguard Information Technology ETF (VGT) fell 1.1%.

Retail sentiment on Stocktwits for QQQ, SPY, and DIA was ‘bullish’ with ‘high’ message volumes.

US Market Drivers

The tech-heavy index faced pressure after Micron Technology (MU) shares fell 3.9%, driven by market concerns about advancements at China’s CXMT regarding its next-generation chip architecture. Conversely, the Dow gained momentum as Salesforce (CRM) advanced 2% after a double upgrade from Bank of America (BofA).

Elsewhere, crude futures rallied following President Donald Trump’s weekend announcement of an "energy ceasefire" between Russia and Ukraine, which Ukrainian President Volodymyr Zelenskyy subsequently claimed Moscow had broken. U.S. WTI crude climbed 2.1% to settle at $93.74 a barrel, while Brent crude added 1.8% to reach $106.65 per barrel.

Going forward, investors will focus on the upcoming earnings season to gauge the future course around the AI buildout, hyperscaler capex spending, and the impact of higher interest rates and inflation on corporate wallets. 

“Growth has been powerful enough to keep valuations in check and allow investors to look past higher yields, interest rates and inflation,” Bret Kenwell at eToro told Bloomberg. . “Another strong quarter could reinforce the bull narrative intact into year-end, while a disappointment could catalyze a broader pullback.” 

Big banks like JPMorgan, Morgan Stanley and Wells Fargo kick off the earnings season this week. 

Key Trending Stocks

Meta Platforms Inc.(META) launched its newest artificial intelligence model on Monday, marking a milestone in Chief Executive Officer Mark Zuckerberg’s 14-month effort to rebuild the company's AI capabilities and compete with market leaders. 

Microsoft (MSFT) is ramping up its push into homegrown AI chips, unveiling plans to deploy its Azure Maia systems at scale from next year, as the technology giant looks to cut costs and reduce its dependence on external chipmakers amid surging AI demand. 

Chipotle Mexican Grill (CMG) shares drew significant investor attention on Monday after Starbucks (SBUX) explicitly denied plans to acquire the burrito chain, following last week’s Financial Times report that the coffee giant had explored a potential takeover. 

Bumble Inc. (BMBL) shares jumped 50% on Monday after reports that the dating-app company is in advanced talks to be taken private at a valuation of roughly $1 billion, while shares of rival and Tinder parent Match Group (MTCH) edged 1% higher. 

Snap Inc. (SNAP) share price jumped for the sixth straight session after derivatives traders made bold bets on the Snapchat parent, pouring capital into bullish call options as the social media company's stock shows fresh momentum. 

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