Nasdaq Plunges as Chip Stock Rout Continues Amid Geopolitical Tensions
The US stock markets closed mixed on Monday as semiconductor stocks dragged the Nasdaq Composite lower. The Dow Jones Industrial Average, however, rose by 140 points due to a rotation into defensive and financial names.
The Nasdaq Composite fell 0.76% to settle at $25,980.19, its fourth consecutive session of decline. The S&P 500 declined 0.28% to close at $7,652.86, pressured by weakness in the information technology sector.
On the other hand, the Dow Jones Industrial Average gained 0.26% to end at $53,417.16. This was supported by strength in financial and consumer defensive stocks, including Visa, which surged 3.07%. UnitedHealth Group rose 2.27%, while Walmart gained 2.72% and Disney advanced 2.62%
The rotation into defensive sectors was evident as investors sought safety amid rising geopolitical uncertainty. The Dow's advance was also supported by a decline in oil prices, which eased concerns about inflationary pressures.