Dow rises 0.29%; S&P 500, Nasdaq fall

SpaceX plunges on corporate bond issuance concerns

Alphabet, Amazon, Microsoft weaken; Micron, Intel gain

A broadcast featuring US President Donald Trump plays on screens at the New York Stock Exchange. [Getty Images Bank]
A broadcast featuring US President Donald Trump plays on screens at the New York Stock Exchange. [Getty Images Bank]

US stocks closed mixed Monday as a sharp plunge in SpaceX and broad weakness among major technology shares weighed on sentiment. While the Dow Jones Industrial Average edged higher, SpaceX tumbled more than 16 percent and key big-tech names fell in tandem, pushing the Nasdaq Composite down 1.32 percent.

The Dow rose 148.01 points, or 0.29 percent, to close at 51,712.71 on the New York Stock Exchange (NYSE) on Monday local time.

The S&P 500 fell 27.79 points, or 0.37 percent, to 7,472.79, while the Nasdaq Composite dropped 351.33 points, or 1.32 percent, to 26,166.60.

Market attention centered on SpaceX, which plunged 16.4 percent after news broke that the space company plans to issue investment-grade corporate bonds — its first ever — worth at least $20 billion to fund AI infrastructure development.

SpaceX said it intends to use the proceeds for "general corporate purposes." Analysts believe the offering is aimed at refinancing a bridge loan the company took out in March following its merger with AI startup xAI. The bond issuance comes just 10 days after SpaceX completed an approximately $85 billion IPO. The stock closed at $154.60, drawing closer to its IPO price of $135.

Major technology stocks also fell broadly. Alphabet, Google's parent company, dropped $18.35, or 4.99 percent, to $349.68 after reports emerged that key AI researchers were leaving for rivals. Investor sentiment was rattled by news that John Jumper — a lead researcher at Google DeepMind and winner of the 2024 Nobel Prize in Chemistry — is joining AI startup Anthropic.

Amazon fell $11.60, or 4.75 percent, to $232.79; Microsoft dropped $12.06, or 3.18 percent, to $367.34; and Meta Platforms shed $13.37, or 2.32 percent, to $563.85. Palantir tumbled $8.97, or 6.98 percent, to $119.50. Some semiconductor stocks bucked the trend — Micron Technology gained 6.82 percent and Intel rose 5.19 percent.

Oil prices fell on expectations of progress in US-Iran negotiations. Reports that the two countries had agreed on a roadmap toward a final deal within 60 days raised hopes for easing tensions in the Middle East. News that the US Treasury Department would temporarily permit sales of Iranian crude also bolstered the outlook for expanded supply.

August-delivery Brent crude closed down 3.31 percent at $77.90 per barrel, while July-delivery West Texas Intermediate (WTI) fell 2.32 percent to $74.82 per barrel.

Investors are now turning their attention to the US Personal Consumption Expenditures (PCE) price index for May, due June 25. The PCE is the Federal Reserve's preferred inflation gauge, and analysts warn that a reading above expectations could reignite concerns about the path of monetary policy.

"Technology stocks are sensitive to investor sentiment, so related names tend to move in the same direction," said Bill North, chief investment director at US Bank. "Over the long term, the most powerful growth driver remains AI data center buildout."


hajun825@heraldcorp.com