US equities were mixed after the long weekend as sector valuations and outlooks continued to diverge. The Nasdaq 100 slipped 0.4%, while the S&P 500 and Dow, both less heavily weighted toward technology, were little changed. Software-as-a-service names stayed under pressure amid concerns that advances in AI automation could erode demand in the space, with Intuit and Oracle notably weaker.
Hardware makers that have benefited from the wave of data center capital spending also traded erratically, reflecting doubts that elevated investment will ultimately deliver the returns many investors anticipate. AMD declined more than 1%, and Nvidia and Broadcom were also in negative territory. Cybersecurity stock CrowdStrike fell more than 2% after Mizuho downgraded its rating on the company.
In media, Warner Bros. Discovery gained more than 2% as it reportedly reopened deal discussions with Paramount following an improved offer from the latter. Financials outperformed, with banks and other financial stocks moving sharply higher on renewed support from the US Treasury market.
