US stock market update: Chip stocks lift NASDAQ 100 1.4% higher; Dow Jones and S&P 500 trade mixed

The US stock markets opened the week on a positive note, with major benchmark indices trading in the green. The tech-heavy NASDAQ index soared over 400 points or 1.4% on Monday as chip stocks continued to soar. Meanwhile, the S&P500 rallied 0.34%. On the other hand, Dow Jones oscillated between gains and losses in the opening session.

The NASDAQ 100 index, which soared over 400 points, was primarily driven by a rally in chip stocks like Micron, Nvidia, AMD, and Intel Corporation, which rallied as much as 5% in Monday’s opening session. Meanwhile, the remaining Magnificent Seven companies showed mixed performance, with Alphabet Inc and Amazon trading in green with gains of up to 3.5% and Microsoft Corporation, Apple Inc, Tesla and Meta Platforms trading in red with losses of up to 2%.

Meanwhile, NVIDIA clinched back the top position from Apple Inc with the highest market capitalisation of $4.97 trillion, while Apple Inc's market capitalisation stood at $4.85 trillion. Last week, Apple Inc shares surged past NVIDIA’s market capitalisation for a brief period.

SpaceX's share price also plunged 2.4% to trade near $120 per share as profit-booking extended after shares fell briefly below the listing price of $135 per share. The financial services stocks like Goldman Sachs and JPMorgan Chase added 1% gains on Monday evening, extending the buoyancy from the previous week after the earnings release.

The crude oil prices eased off from recent highs as the situation in the Middle East remains volatile. The WTI crude oil prices hovered near $80 per barrel after hitting $84 per barrel intraday high. The Brent crude oil futures too eased near $88 per barrel after hitting intraday high of $91.4 per barrel on Monday.

Among the major earnings, the aviation company Ryanair Holdings Plc and Domino's Pizza Inc will release their earnings on Monday. The consensus estimates for earnings for Ryanair Holdings Plc stand at $3.6 per share vs $2.01 per share in the same period last year.

Asian markets ended mostly lower on Monday amid renewed tensions in the Middle East. Subsequently, Tehran declared that its ceasefire with the US had effectively collapsed and stated it intercepted 4 vessels transiting the Strait of Hormuz over the weekend. Korean shares slumped as investors aggressively offloaded artificial intelligence and memory chip stocks.