S&P 500, Nasdaq Drop As SpaceX, Broader Tech Weakness Outweighs US-Iran Hopes — SPCX, GOOGL, NFLX, COIN, MU In Focus

• The S&P 500 and the Nasdaq 100 fell 0.4% and 0.2%, respectively, while the Dow Jones added 0.3%.
• SpaceX launched its first bond sale since its IPO. 
• The U.S. issued a 60-day license allowing Iran to sell oil on the international market.

The S&P 500 and Nasdaq dropped on Monday amid a 16% decline in SpaceX (SPCX) shares and a broader tech sell-off, offsetting optimism over progress in U.S.-Iran peace talks, while the Dow inched higher, supported by lower oil prices. 

The S&P 500 fell 0.4%, the Nasdaq lost 0.2%, and the Dow Jones added 0.3%. The Russell 2000, which tracks stocks with small market capitalizations, rose 0.8%. 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) slipped 0.3%, and Invesco QQQ Trust (QQQ) ended Monday around 0.2% lower, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) ended 0.4% higher. 

Meanwhile, the VanEck Semiconductor ETF (SMH) soared 1.3%.

However, retail sentiment on Stocktwits for SPY, QQQ, and DIA was ‘bullish’, with ‘normal’ to ‘high’ message volumes.

US Market Drivers

Space Exploration Technologies Corp (SPCX) tanked about 16% after the rocket maker launched its first bond offering following the blockbuster debut of its shares on Nasdaq earlier this month. The company did not reveal the bond pricing, nor did it disclose the amount of funds it is seeking to raise. 

SpaceX said it plans to use the proceeds from the inaugural bond offering to fully repay outstanding borrowings under its bridge loan facility, cover related fees and expenses, and allocate any remaining funds toward general corporate purposes. 

U.S. stock market indices ended the previous week higher and have recovered about 20% from their war-induced lows, driven by hopes for a long-lasting peace agreement in the Middle East, strong AI deals, and robust corporate financial results.

The U.S. and Iran agreed on a roadmap towards reaching a final deal to end the war within 60 days, mediators Pakistan and Qatar said in a joint statement on Monday, with the the US issuing a 60-day license allowing Iran to sell oil on the international market, calming some war jitters. 

International benchmark Brent crude futures for August fell 3.31% to close at $77.90 a barrel. U.S. West Texas Intermediate futures for July closed 2.32% lower at $74.82, as per data quoted by CNBC. 

Going ahead this week, investors will shift their attention towards the personal consumption expenditures price index data, the Fed’s preferred inflation gauge, to be released Thursday, along with quarterly results from Micron Technologies due Wednesday after market hours, to judge the seemingly unending demand for storage and memory. 

Trending Stocks To Watch 

SpaceX (SPCX): The rocket maker signed a multibillion-dollar agreement to provide computing resources to artificial-intelligence startup Reflection AI. 

Alphabet (GOOGL): Stock plummeted more than 5% Monday, its worst one-day fall in over a year, following news that two of Google’s most celebrated artificial intelligence researchers have defected to rival firms. The tech giant also signed a landmark entertainment alliance with indie studio A24.   

Netflix (NFLX): Shares fell, nearing its 52-week low, amid jitters over Meta’s announcement of Instagram’s expansion into Samsung TVs, but retail investors are viewing current levels as a great buying opportunity.  

Coinbase (COIN):  The company expanded its crypto derivatives lineup, launching pre-IPO perpetual futures contracts tied to artificial intelligence giants OpenAI and Anthropic. 

Micron Technologies (MU): The company extended its strategic partnership with Anthropic, just weeks after participating in the AI startup’s Series H funding round. 

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