Why it's trending
The Dow's gain on a day when tech stocks fell and oil prices plunged is notable, sparking search interest as traders reposition amid AI uncertainty and geopolitical shifts.
The Dow Jones Industrial Average closed 262.83 points higher on Monday, July 26, 2026, at 52,210.08, a 0.51% gain, while the S&P 500 added just 0.02% to 7,413.18 and the Nasdaq Composite fell 0.18%, according to CNBC. The mixed session came as semiconductor stocks tumbled but recovered from lows, and oil prices slid sharply after the U.S. and Iran paused hostilities.
Chip stocks, measured by the VanEck Semiconductor ETF (SMH), fell more than 2%, adding to Friday's losses. AMD and Teradyne dropped 5% and 4% respectively, while Micron Technology shed about 2%. Earlier in the day, names in the sector rallied on news of Chinese chipmaker CXMT's blockbuster IPO, but a subsequent report that China is developing deep ultraviolet lithography machines hit shares of ASML, which fell nearly 6%, per CNBC.
"There's just a lot of uncertainty about what is happening with Chinese companies," Thomas Martin, senior portfolio manager at Globalt Investments, told CNBC. "You have a lot of competition and technological advancement ... in product markets that are very tight." He added that traders are reshuffling investments as signs of "air being let out" of the AI bubble emerge.
Oil prices dropped as the U.S. and Iran paused their attacks: Brent crude fell 8.7% to $88.36 a barrel, and WTI settled down 7.5% at $82.61. The Dow's rise was also supported by gains in communication services and consumer staples stocks, which were the top-performing sectors. Markets now look ahead to more economic data later in the week.
Timeline
- Dow closes up despite tech weakness
Dow Jones Industrial Average rises 262.83 points to 52,210.08. S&P 500 flat, Nasdaq down. Chip stocks tumble on China competition fears and AI bubble concerns. Oil prices fall sharply after US-Iran pause. (Source: CNBC)
Questions people ask
Why did the Dow Jones rise when other indexes fell?
The Dow rose due to a combination of falling oil prices after the US-Iran pause, which boosted investor sentiment, and a partial recovery in chip stocks from session lows. The Dow's composition, less exposed to tech than the Nasdaq, also helped. (Source: CNBC)
What caused chip stocks to fall?
Semiconductor stocks declined amid uncertainty over Chinese competition, including a report that China is developing deep ultraviolet lithography machines, threatening ASML's dominance. AI bubble concerns also weighed. (Source: CNBC)
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