The stock market closed mixed on Monday as chip stocks weighed on the Nasdaq Composite, with the benchmark S&P 500 and blue-chip Dow Jones Industrial Average eking out modest gains while the tech-focused index pulled back slightly.
The Dow Jones rose 0.5%, while the S&P 500 ended fractionally higher and the Nasdaq fell 0.2%, according to Investopedia’s market report on July 27, 2026. The mixed finish came as major indexes kicked off the busiest week of the corporate earnings season, with roughly a third of S&P 500 companies slated to report quarterly results.
Semiconductor stocks bore the brunt of selling pressure. The iShares Semiconductor ETF (SOXX) and Roundhill Memory ETF (DRAM) reversed early gains and closed down about 2% and 1.5%, respectively. Memory stocks including Sandisk, Western Digital, and Seagate Technology fell between 4% and 11%, with Sandisk leading decliners across the broader market.
The chip sector selloff reflected growing investor concerns about artificial intelligence spending. Investors have questioned whether massive capital expenditures by tech companies on AI infrastructure can justify the valuations commanding the semiconductor and broader technology sectors. Nvidia, a key beneficiary of AI demand, dropped 5% on Monday, pushing it to lose its crown as the world’s most valuable company to Apple. Nvidia’s market cap fell to roughly $4.77 trillion, while Apple’s climbed to about $4.94 trillion, according to multiple sources including Yahoo Finance and MarketWatch.
Oil prices plunged sharply, providing a bright spot for energy-sensitive sectors. West Texas Intermediate futures sank 7.8% to $82.30 a barrel, while Brent crude plummeted 9.1% to $88, according to Investopedia. The sharp pullback followed reports that Iran would pause military attacks if the U.S. continued its own pause, along with news that President Donald Trump called off an escalation of the conflict. Shares of energy giants Chevron and ExxonMobil declined roughly 2.5% and 1.5%, respectively, as lower oil prices weighed on the sector.
The 10-year Treasury yield, which influences mortgage rates and other consumer borrowing costs, pulled back more than four basis points from Friday’s close to about 4.64%, according to Investopedia. The yield had hit its highest level since January 2025 at nearly 4.72% on Thursday amid inflation concerns as gasoline prices moved back above $4 a gallon.
This week marks a critical juncture for markets, with earnings from Magnificent Seven members Meta Platforms and Microsoft scheduled for Wednesday, and Amazon and Apple set to report on Thursday. What these companies say about AI spending levels will likely dominate investor attention, particularly given recent volatility tied to concerns about whether artificial intelligence investments will generate sufficient returns. Major stock indexes are coming off two straight weeks of declines, adding pressure to deliver reassuring earnings guidance as the market navigates uncertainty about the sustainability of the AI boom.
Sources
- Investopedia — Stock market close on July 27, 2026, including index movements, chip stock declines, oil price drops, Treasury yield movement, and earnings week preview
- Yahoo Finance — Apple’s market cap of $4.94 trillion and confirmation of market cap leadership shift
- MarketWatch — Apple reclaiming title as world’s largest company with $4.93 trillion market cap and Nvidia’s $4.78 trillion valuation
- CNBC — Nvidia’s 5% decline and market cap loss to Apple on July 27, 2026
