U.S. stocks finished split on Monday, June 22, as a heavy sell-off in the year’s biggest technology winners pulled the broad market down even as industrial and financial shares climbed. The drop came despite easing war risk: Iran said Monday there had been “encouraging progress” in talks with the United States in Switzerland, and Vice President JD Vance said Tehran had agreed to allow nuclear inspections under a roadmap toward a deal within 60 days. With the geopolitical fear fading, investors rotated hard out of crowded AI names and into cheaper corners of the market.

The Dow Jones Industrial Average rose 148.01 points, or 0.29%, to 51,712.71, while the S&P 500 slipped 0.37% to 7,472.79 and the Nasdaq Composite fell 1.32%, or 351 points, to 26,166.60. The Russell 2000 of smaller companies bucked the trend, adding 0.83% to 3,004.40. The Dow’s advance rested almost entirely on one stock: Caterpillar jumped nearly 4% and, by midday, accounted for more index points than the Dow’s entire gain.

Market movers

The selling hit the megacaps hardest. Alphabet sank about 5% on reports of AI talent leaving the company and news that France’s intelligence service plans to drop a U.S. AI tool to avoid “strategic dependency.” Amazon lost roughly 4.8%, Microsoft fell 3%, Meta Platforms slid more than 2%, and Nvidia retreated as investors questioned the soaring cost of the AI build-out. SpaceX, ticker SPCX, tumbled 16.4% for a third straight losing session after announcing a new bond sale, though it remains well above its June 12 IPO price.

Money moved toward memory and banks instead. Micron Technology rose about 5% to a fresh high ahead of Wednesday’s earnings, and Sandisk added 5% as the memory rally rolled on. Bank of America and JPMorgan each gained around 2%. Wedbush Securities analyst Matt Bryson carries an Outperform rating and a $1,300 price target on Micron, raised from $550 on June 18, citing memory pricing running ahead of the company’s own forecasts.

Healthcare also generated one of the day’s biggest winners. AbbVie rose about 1% after agreeing to acquire Apogee Therapeutics in a $10.9 billion cash deal. Apogee shares surged nearly 47% on the announcement as investors priced in the takeover premium.

Global impact

The market moves rippled across the globe. European shares rose as easing Middle East tensions reduced energy-supply concerns, while Asian markets were mixed as investors weighed the prospect of renewed Iranian oil exports against the possibility of higher U.S. interest rates. A successful U.S.-Iran agreement could reshape global energy flows, lower transportation costs and ease inflation pressures in major importing economies including Europe, Japan and India.

The pan-European Stoxx 600 closed up 0.58%, Britain’s FTSE 100 gained 0.72%, and Germany’s DAX rose 0.62%. The day’s biggest surprise was political: U.K. Prime Minister Keir Starmer announced his resignation, clearing the way for Britain’s seventh leader in a decade. London markets took it in stride, with NatWest, Barclays and Lloyds Banking Group each up nearly 4%, the pound steady near $1.324, and government bonds firmer. Former Manchester mayor Andy Burnham is the early favorite to succeed him.

A more hawkish Federal Reserve also continues to pressure emerging markets by supporting a stronger dollar and raising borrowing costs worldwide. Investors from Seoul to São Paulo are now watching the same forces driving Wall Street: inflation, interest rates, energy prices and the future pace of AI-driven growth.

Commodities and volatility

Oil stayed soft on hopes that a deal would restore Gulf supply. West Texas Intermediate crude settled near $74.29 a barrel and global benchmark Brent eased about 1.8% to roughly $79, far below its May wartime peak above $126. Gold edged up 0.1% to about $4,207 an ounce as some investors kept a hedge in place, and Bitcoin traded near $63,900. The CBOE Volatility Index, Wall Street’s fear gauge, rose nearly 3% to 17.28. Treasury yields kept climbing after last week’s hawkish Federal Reserve turn, with the 2-year note at 4.04%, its highest since February 2025, and the 10-year at 4.50%.

The next few sessions will decide whether Monday’s tech stumble was a pause or the start of something larger. On Tuesday, S&P Global releases its June flash purchasing managers’ surveys, while earnings arrive from FedEx, Carnival and Cerebras Systems. Analysts expect FedEx to report revenue near $24 billion, up about 8% from a year earlier, in its first full quarter following a major spin-off.

Wednesday brings May new home sales and the report many investors are waiting for: Micron reports after the close. Wall Street is looking for earnings of roughly $20.05 per share and revenue around $35 billion, a jump of about 276% from a year earlier as AI demand continues draining memory supply. The shortage has left rivals Samsung and SK Hynix chasing the same rapidly tightening market.

Thursday is the macro centerpiece. The government releases the PCE Price Index, the Federal Reserve’s preferred inflation gauge, along with May personal income and spending data, May durable goods orders, and a final reading on first-quarter GDP. The University of Michigan’s revised consumer sentiment survey closes the week on Friday.

Hanging over all of it is the new policy stance under Fed Chair Kevin Warsh. Economists at Deutsche Bank now pencil in two rate increases this year, while Bank of America sees three, a sharp reversal from earlier expectations for little or no movement. Markets are currently pricing roughly a 75% chance of a rate hike as soon as September.

For now, investors are balancing a calmer Middle East against a hawkish Federal Reserve and a wobble in the AI giants that have carried the market higher all year. Tuesday’s economic data and the first wave of earnings reports will help determine whether Monday’s technology sell-off was simply profit-taking or the beginning of a broader shift in market leadership.

JBizNews Desk
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