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U.S. stocks finished mixed Monday: the Dow rose 0.4%, while the S&P 500 fell 0.5% and the Nasdaq slid 1.1%. Crude oil dropped 8% amid reports of possible diplomatic openings in the Persian Gulf, but concerns about AI spending weighed on several large technology stocks. Apple and Palantir were due to report earnings after the close.
The Dow Jones Industrial Average rose 0.4% to 51,983 on Monday, while the S&P 500 fell 0.5% to 7,541 and the Nasdaq Composite dropped 1.1% to 25,164, as an early market bounce faded and technology shares remained under pressure. Oil prices fell sharply amid reports of possible diplomatic openings involving Iran, while investors weighed concerns about AI spending ahead of company earnings.
The major indexes had risen broadly earlier in the session, but gains weakened in the afternoon. The front-month West Texas Intermediate crude contract fell 8% to $95.84 a barrel. Treasury yields were mixed: the two-year yield rose 1.3 basis points to 4.594%, while the 10-year yield fell 2.5 basis points to 4.904% and the 30-year yield declined 2.9 basis points to 5.28%.
Reports pointed to possible movement toward diplomacy in the Middle East. Axios reported that President Donald Trump told Israeli Prime Minister Benjamin Netanyahu he was open to diplomacy as a way out of the stalemate. Separately, Iran’s state news agency IRNA reported that Supreme Leader Mojtaba Khamenei had permitted the government to engage in peace negotiations. Those reports coincided with the decline in oil, but they do not establish that negotiations have begun or that a resolution is near.
Technology stocks were uneven. Apple fell 1.8% and Nvidia lost 1.3% as the two companies alternated at the top of the global market-capitalization rankings. Amazon rose 2.2% and Tesla gained 1%, while Alphabet slipped 0.3%, Meta Platforms fell 1.3% and Microsoft dropped 2.8%. Palantir, another company with substantial AI exposure, declined 3.1%. Apple and Palantir were scheduled to report results after the closing bell.
Outside the largest technology names, Idexx Laboratories climbed 21.9% after reporting better-than-expected third-quarter results and raising its full-year outlook, according to the company’s reported results. Sherwin-Williams rose 6%, leading the Dow’s constituents. Several sectors, including materials, financials, industrials, consumer staples and real estate, gained more than 1%.
Market close · Monday
Dow Rises Amid More Selling for AI Stocks
U.S. markets finished mixed as strength in the Dow met renewed pressure on technology shares. Oil plunged amid reports of possible diplomatic openings, while investors looked ahead to earnings from Apple and Palantir.
Three benchmarks, three different signals
An early broad advance faded into the close. The Dow held a modest gain as losses in large technology names weighed on the Nasdaq.
Oil fell; Treasury yields moved in both directions
Reports of possible diplomatic openings coincided with the sharp decline in crude. The reports do not confirm that negotiations have begun or that a resolution is near.
Energy repriced quickly
The front-month West Texas Intermediate contract dropped 8% to $95.84 a barrel. Lower crude can ease fuel and inflation pressure if the move lasts, but one day cannot establish a longer-term direction.
Bond market signals were mixed
AI exposure drew scrutiny, with notable exceptions
Investors weighed questions about AI spending ahead of company results. Performance across the largest technology names was uneven.
Company news moved individual shares
Positive earnings news lifted some stocks, while a proposed AI infrastructure deal brought steep declines for both companies involved.
Idexx and Sherwin-Williams advanced
Idexx Laboratories climbed 21.9% after reporting better-than-expected third-quarter results and raising its full-year outlook. Sherwin-Williams rose 6%, leading Dow constituents. Materials, financials, industrials, consumer staples and real estate each gained more than 1%.
Marvell–Lumentum deal met a selloff
Marvell agreed to acquire Lumentum in a stock transaction. Lumentum shareholders would receive 4.5 Marvell shares per share held. Marvell cited AI infrastructure connectivity needs; both stocks fell sharply after the announcement.
Projections are not realized results
4.5 shares
Marvell shares offered for each Lumentum share. Marvell valued the deal at about $1,132 per Lumentum share, based on October 28 closing prices.
About 24%
The stated premium uses the companies’ October 28 closing prices as the comparison point.
$1B+ annual synergies
Marvell projected annual run-rate cost savings and first-year earnings accretion. The eventual financial effects remain uncertain.
Anthropic reported rapid growth and a large loss
An updated registration statement filed with the SEC offered a snapshot of reported results. The figures do not establish future performance or a completed public listing.
Sequential growth cooled
Quarter-to-quarter growth was 47%, compared with 144% in Q2 and 132% in Q1. Revenue growth and a reported net loss describe different parts of the financial picture.
Market questions remain open
The filing alone does not show how financial performance will develop or what valuation investors might assign to the company’s shares.
Several explanations are still only possibilities
Market commentary described a bullish longer-term narrative alongside near-term challenges. That assessment is not a promise about future returns.
“The companies’ complementary electrical and optical capabilities will address increasingly complex connectivity requirements across next-generation AI infrastructure.”Marvell Technology
Questions remain about the durability of AI demand and the returns on large investments. The reported diplomatic openings do not establish the status or outcome of talks, while Monday’s oil decline may or may not persist. Deal timing and projected benefits also remain subject to uncertainty.
Earnings and economic data set the next checkpoints
Apple + Palantir
Results and company commentary could add detail on sales, costs and AI investment.
Midterm elections
Identified as a potential source of volatility; market effects depend on results and investor interpretation.
October jobs report
Investors will assess the labor data alongside oil prices and any reliable updates on diplomacy.
A Split Market Tests the AI Trade
Monday’s divergence shows that a gain in the Dow did not reflect a broad rise across the market. The Nasdaq’s 1.1% decline and losses among several large technology companies indicate that investors remained selective, particularly around businesses tied to AI spending. The performance of major indexes can matter to retirement and investment portfolios, but a single session does not establish a lasting trend.
The pullback in oil was another important market signal. Lower crude prices can ease pressure on fuel costs and inflation if sustained, while the bond market’s mixed moves suggested investors were not responding uniformly. The reported diplomatic openings offer a possible explanation for the day’s oil move, but the reports alone do not confirm a change in the conflict or its future effects on energy supplies.
Investors also had near-term catalysts to consider. Apple’s results were due after the close, and Palantir was also on the earnings calendar. Updates from those companies could add information about demand, spending and expectations, although one company’s results would not settle broader questions about the scale or returns of AI investment.
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Earnings and Deal News Add Pressure
Market commentary from E*TRADE from Morgan Stanley Managing Director Chris Larkin described the longer-term bullish market narrative as intact, while pointing to difficulty sustaining momentum amid oil prices, AI spending questions, inflation and geopolitics. That is an assessment of market conditions, not a guarantee about future returns.
Monday also brought a major proposed transaction in the technology supply chain. Marvell Technology said it would acquire Lumentum Holdings in a stock deal: Lumentum shareholders would receive 4.5 Marvell shares for each share held. Marvell said the companies’ electrical and optical capabilities could serve connectivity needs in next-generation AI infrastructure. Both stocks fell sharply after the announcement, with Marvell down 12.7% and Lumentum down 18.6% at the close.
Marvell said the deal was valued at about $1,132 per Lumentum share, a roughly 24% premium based on the companies’ October 28 closing prices. The company also projected more than $1 billion in annual run-rate cost synergies and said it expected the transaction to be accretive to earnings in the first year after closing. These are management projections; the transaction’s eventual financial effects remain uncertain.
Separate AI-sector news came from Anthropic. An updated registration statement filed with the Securities and Exchange Commission reported third-quarter revenue of $16.96 billion and a net loss of $23.29 billion. The filing showed year-over-year revenue growth of about 1,127%, while quarter-to-quarter growth slowed to 47%, compared with 144% in the second quarter and 132% in the first. The figures provide a snapshot of the company’s reported performance, not a measure of future results.
“The companies’ complementary electrical and optical capabilities will address increasingly complex connectivity requirements across next-generation AI infrastructure.”
— Marvell Technology
Diplomacy and AI Returns Remain Open
The reports about possible Middle East diplomacy do not confirm that negotiations have started, what any talks would cover, or whether they would change conditions affecting oil supply. It is also unclear whether Monday’s sharp oil decline will persist; one session’s price move cannot establish a longer-term direction.
For technology shares, the durability of AI demand and the returns companies will earn on large investments remain uncertain. Apple’s and Palantir’s scheduled reports could provide company-specific updates, but their results may not resolve broader questions about spending across the sector. Marvell’s projected synergies and earnings effects are management expectations, and the deal’s closing timing and realized benefits were not established in the reported announcement.
Anthropic’s filing reported high revenue growth alongside a large net loss and a slowdown in sequential growth. The figures do not by themselves show how the company’s financial performance will develop or what valuation investors would assign to its shares. Any reported plans for a possible public offering remain distinct from a completed listing.
Earnings and Data Set the Next Tests
Investors were due to review Apple’s and Palantir’s earnings after Monday’s close, including any company commentary on sales, costs and AI-related investment. Markets will also watch whether oil’s decline continues and whether further reliable information emerges about the reported diplomatic openings.
The week’s scheduled events include midterm elections on Tuesday and an October jobs report on Friday, both identified by Larkin as potential sources of market volatility. Their effects will depend on the results and how investors interpret them. The next sessions may show whether Monday’s split between the Dow and technology-heavy indexes persists, but the market direction remains uncertain.
Key Questions
How did the major U.S. stock indexes finish Monday?
The Dow rose 0.4% to 51,983. The S&P 500 fell 0.5% to 7,541, and the Nasdaq Composite declined 1.1% to 25,164.
Why did oil prices fall?
Front-month WTI crude fell 8% to $95.84 a barrel. Reports about possible diplomatic openings involving Iran coincided with the decline, but the available information does not establish that diplomacy caused the move or that negotiations have begun.
Which major technology stocks were scheduled to report earnings?
Apple and Palantir were scheduled to report after Monday’s close. Their results and commentary could provide updates on their businesses, but would not settle the wider debate over AI investment and returns.
What were the terms of Marvell’s proposed Lumentum deal?
Marvell said Lumentum shareholders would receive 4.5 Marvell shares for each Lumentum share. Marvell cited more than $1 billion in potential annual run-rate cost synergies; that figure is a company projection, not a confirmed realized saving.
What market events were coming later in the week?
The calendar included midterm elections on Tuesday and an October jobs report on Friday. Their market impact was uncertain ahead of the events.
Source: kiplinger.com
