The major averages finished Monday's session mixed as continued weakness in semiconductor stocks offset gains across much of the broader market. The S&P 500 (-0.1%) and Nasdaq Composite (-0.4%) ended with modest losses, while the DJIA (+0.4%) outperformed. The Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.4%) also finished lower.

The market spent much of the session trading in relatively narrow ranges, with a lack of major headlines and anticipation surrounding the upcoming Q3 earnings season contributing to the subdued action. Still, the relatively quiet finish masked another pronounced divergence beneath the surface, as weakness in heavily weighted technology stocks contrasted with strength across several other sectors.

The information technology sector (-0.9%) was the biggest drag on the market, reflecting another sharp retreat in semiconductor stocks. The PHLX Semiconductor Index fell 2.7%, with NVIDIA (NVDA 226.32, -2.96, -1.29%) among the notable laggards. Memory stocks faced additional pressure following a CNBC report that China's CXMT plans to begin producing next-generation memory chips, potentially intensifying competition with U.S. and South Korean manufacturers. Micron (MU 989.04, -39.96, -3.88%) and Sandisk (SNDK 1487.33, -94.49, -5.97%) were among the weaker performers.

The selling also extended to other areas tied to the AI infrastructure buildout, including Lumentum (LITE 995.41, -107.94, -9.78%) and Ciena (CIEN 404.86, -44.91, -9.99%), which ranked among the S&P 500's worst performers. Weakness in data center power-related names Bloom Energy (BE 262.35, -18.15, -6.47%) and Generac (GNRC 218.38, -6.56, -2.92%) also weighed on the industrials sector (-0.1%).

The weakness in technology stocks was not universal, however. Apple (AAPL 340.97, +4.33, +1.29%) advanced, while Meta Platforms (META 742.96, +24.29, +3.38%) and Alphabet (GOOG 348.97, +1.11, +0.32%) helped lift the communication services sector (+1.1%). Meta was a particular standout following an Abab News report that Mark Zuckerberg hinted at a new "Watermelon" AI model in a recent interview. Wireless carriers also recovered some of Friday's losses, providing additional support to the sector.

Outside of technology, rising crude oil prices were another important influence on trading. WTI crude settled $1.85 higher (+2.0%) at $93.77 per barrel following an escalation in the conflict between Saudi Arabia and Houthi forces over the weekend. President Trump indicated that the U.S. could become involved in the conflict, adding to concerns about the geopolitical situation. The energy sector (+1.5%) benefited from the advance, extending its strong performance so far this month.

Higher oil prices, meanwhile, weighed on the consumer discretionary sector (-0.7%), which was among the day's weakest performers. Amazon (AMZN 259.53, -2.90, -1.11%) declined following a Wall Street Journal report that the company is discussing a roughly $7 billion acquisition of AI startup Decart. Chipotle Mexican Grill (CMG 30.40, -1.19, -3.75%) also struggled after CNBC reported that Starbucks (SBUX 92.28, +1.54, +1.69%) is not considering an acquisition of the restaurant chain, contradicting reports from last week.

Despite the sector's weakness, eBay (EBAY 114.65, +2.46, +2.19%) was a notable gainer after Morgan Stanley named the company its Top Pick and raised its price target to $132 from $127, citing growth opportunities in Live Commerce.

Elsewhere, the health care sector (+0.7%) posted a solid gain, while the consumer staples sector also enjoyed relative strength, helped by continued buying interest in Lamb Weston (LW 50.18, +2.31, +4.83%) following last week's better-than-expected earnings and increased guidance.

Financial stocks also attracted attention ahead of a busy week of earnings, with JPMorgan Chase (JPM 334.49, +1.50, +0.45%), Citigroup (C 131.93, +2.29, +1.77%), Goldman Sachs (GS 894.03, -1.29, -0.14%), and Wells Fargo (WFC 83.30, -0.25, -0.30%) scheduled to report quarterly results Tuesday.

The broader market held up relatively well despite another sizable semiconductor selloff and higher crude oil prices, but weakness in some of the market's largest technology names continued to limit the major averages. The divergence between semiconductor stocks and other areas of the market remains a central theme as investors prepare for the first major wave of Q3 earnings reports.

There was no economic data of note today, and the U.S. Treasury market was closed for Columbus day. 

• Nasdaq Composite: +17.2% YTD
• S&P 500: +14.1% YTD
• Russell 2000: +12.6% YTD
• S&P Mid Cap 400: +10.6% YTD
• DJIA: +7.9% YTD