Wall Street mixed: Dow up 213 points, Nasdaq falls 1.1% as chip stocks slide
US stocks ended mixed on Monday with the Dow rising 0.4% while the Nasdaq fell 1.1%, extending a three-day losing streak for the S&P 500 and Nasdaq. Chip stocks were hit hard, with Intel dropping nearly 9%, while Marvell's $115bn acquisition of Lumentum sent both stocks lower.
Wall Street ended mixed on Monday, with the S&P 500 and Nasdaq extending their losing streak to three consecutive sessions and hitting three-month lows. The Dow Jones Industrial Average rose 213 points, or 0.4 per cent, to close at 51,983 points, after earlier surging as much as 655 points to a high of 52,424 before retreating below the 52,000 level in late trading.
The S&P 500 fell 38 points, or 0.5 per cent, to 7,541, while the Nasdaq Composite dropped 272 points, or about 1.1 per cent, to 25,164. The declines came after US President Donald Trump denied considering a strike on Iran ahead of the midterm elections and said a deal with Tehran was possible, sending oil prices sharply lower. US long-term bond yields also declined.
Chip stocks were among the biggest losers. Intel continued its slide, falling nearly 9 per cent. Other major technology stocks also came under pressure, with Apple and Microsoft dropping nearly 2 per cent and nearly 3 per cent respectively. Tesla and SpaceX rose 1 per cent or more.
In corporate news, Marvell Technology announced it would acquire Lumentum in an all-stock deal valued at $115bn. Shares of Marvell fell nearly 13 per cent, while Lumentum shares dropped nearly 19 per cent. Oracle announced a $20bn stock and bond financing plan, sending its shares down nearly 9 per cent.