Wall Street Mixed as Tech Stocks Dip, Oil Prices Fall on Iran Deal Hopes

Wall Street experienced mixed trading as investors weighed developments in US-Iran negotiations and anticipated key inflation figures. The technology sector, particularly giants like Alphabet, Amazon, Meta Platforms, and Microsoft, dragged down the market. Alphabet saw a 5% drop amid concerns over AI executive departures.

SpaceX, Elon Musk's space exploration company, also faced significant pressure, with its stock declining 16.4% for a third consecutive session. In contrast, Micron Technology surged 5% ahead of its quarterly earnings report, and other chipmakers like Advanced Micro Devices and Intel saw modest gains.

Oil prices fell sharply as Qatar and Pakistan reported a US-Iran agreement on a roadmap for a deal within 60 days. Further declines followed the US Treasury's approval for Iranian oil sales during the same period. Brent crude futures for August dropped over 3% to around $77 per barrel, while WTI futures for July fell more than 2% to $74.

The market is now focused on the upcoming release of May personal consumption expenditures (PCE) data, the Federal Reserve's preferred inflation gauge. Economists surveyed by FactSet expect core PCE to rise from April, even excluding volatile food and energy prices. Following last week's hawkish stance from the Fed, expectations for an interest rate hike have shifted to October, making inflation data crucial for future monetary policy decisions.