S&P 500 is little changed as traders weigh AI optimism vs. Iran tensions

The S&P 500 was relatively unchanged on Monday as growing artificial intelligence optimism among investors was measured against tensions in the Middle East.

The broad market index traded down 0.1%, while the Nasdaq Composite moved up 0.2%. The Dow Jones Industrial Average shed 169 points, or 0.3%.

Micron Technology was a winner in the session, rising more than 6%. Last week, Commerce Secretary Howard Lutnick told The Wall Street Journal that the Trump administration is not in support of Apple buying memory chips from China. Bloomberg News also reported that Anthropic’s second-quarter revenue was more than $11.5 billion — a massive jump from a year earlier. Other chip stocks such as Broadcom and Nvidia were higher as well.

However, oil prices were marginally higher after a senior Iranian official told Reuters that the country would shift to an offensive posture if diplomacy with the U.S. fails. U.S. West Texas Intermediate futures last traded above $82 per barrel, while international benchmark Brent crude futures were last above $88 a barrel.

The S&P 500 notched a fresh all-time high last week following a blockbuster earnings season that’s buoyed investor sentiment. The stock market has continued to climb in the face of ongoing hostilities in the Middle East, as well as concerns around the artificial intelligence trade.

Disappointing retail sales data and a relatively mild inflation print have reduced market expectations of a Federal Reserve rate hike in the coming month.