Weekly market review: Dow gains as tech slips and oil rises

NEW YORK — U.S. stocks opened a heavy week of inflation data and bank earnings with a split decision on Monday: the Dow Jones Industrial Average rose while the S&P 500 and Nasdaq Composite slipped as technology shares gave ground. This weekly market review looks at what drove the divide.

The scoreboard

The Dow gained roughly 0.3% to 0.4% in the session, a rise of nearly 200 points by one tally, while the S&P 500 ended about 0.1% lower, near 7,805. The Nasdaq Composite lost between 0.4% and 0.5%. Reported closing levels differed slightly by outlet, so the percentage moves are the safer guide. Trading came after a winning week in which the S&P 500 and Nasdaq both set record highs, according to Yahoo Finance.

Bond markets were closed for Columbus Day, so the 10-year Treasury yield shown on screens, about 5.24%, reflected the last quoted level and not a fresh trading session.

A rotation, not a retreat

The pattern across sectors pointed to rotation. Money moved out of large technology names and into energy, financials and industrials. Benzinga’s midday sector data had energy in the lead, with communication services and financials also higher while technology lagged, and 24/7 Wall St. reported that blue-chip industrials and financials supported the Dow.

Semiconductors and AI-linked infrastructure companies took the worst of it. The same data had the technology sector fund down about 1.0% and the semiconductor fund down 1.5%. Optical networking names fell by roughly 8% to 10%, and memory maker Sandisk lost about 6% as Micron and SK Hynix also fell on concerns about Chinese competition.

Energy shares rose with crude, with WTI around $93 and Brent near $106 a barrel after an announced Russia-Ukraine energy truce failed to stop strikes on energy infrastructure.

Stock moves outside tech

Some companies moved on their own news. eBay gained after Morgan Stanley named it a top internet pick. Chipotle fell more than 4% after Starbucks said it was not buying the restaurant chain, Yahoo Finance reported.

Equity strategy implications

For investors weighing equity strategy, Monday raised a familiar question: whether a market led by AI-related stocks to record highs has room to broaden. A rotation toward energy and financials is consistent with that, though a single session proves little. The stated triggers for the chip selloff were Chinese competition in memory and broad selling in AI-infrastructure names.

What to watch

The week’s calendar tests the rotation. JPMorgan, Goldman Sachs, Citigroup and Wells Fargo report Tuesday, and the September consumer price index arrives Wednesday. Yahoo Finance noted that analysts expect solid year-over-year bank results, though third-quarter reports may fall short of the strong second quarter.