Dow extends gains, up 140 points as oil slump eases inflation fears; semis in wait-and-see mode — BigGo Finance

The Dow Jones Industrial Average extended its gains on Monday, closing up 140.15 points at 53,417.16. A decline in crude oil futures prices somewhat eased inflation concerns, putting buy orders in the driver’s seat. Meanwhile, the tech-heavy Nasdaq Composite fell 200.26 points to close at 25,980.19, as investors adopted a wait-and-see stance ahead of U.S. semiconductor giant Nvidia’s earnings release scheduled for Wednesday.

The Dow traded firmly throughout the session, buoyed by falling crude oil prices and lower long-term interest rates. The U.S. Treasury Department announced expanded sanctions against Iran on Monday, with Treasury Secretary Bessent unveiling new measures, but the market reaction was limited. Investor attention remained focused on the Jackson Hole symposium later in the week for clues on monetary policy, keeping aggressive trading in check.

Among individual stocks, credit card giant Visa and retail behemoth Walmart posted notable gains. Caterpillar, the construction equipment maker, was sold. Within the Dow, capital continued to flow into cyclical stocks, while semiconductor-related names struggled ahead of Nvidia’s earnings.

Semiconductor stocks were broadly soft on the Nasdaq. Nvidia’s earnings are viewed as a critical barometer for demand prospects in artificial intelligence (AI) semiconductors, and position adjustments ahead of the release weighed on the index. Buying in IT and tech stocks paused, resulting in a mixed session with the Dow and Nasdaq diverging.

Impact on Japanese Markets

Following the U.S. market moves, the TSE Growth Market 250 Index Futures are expected to open with a slight buying bias on Tuesday. The decline in U.S. crude oil prices and long-term interest rates could serve as a tailwind for the growth market. On the other hand, the sluggish performance of semiconductor-related stocks may create a wait-and-see mood among semiconductor names on the Prime Market.

The TSE Growth Market 250 Index Futures ended overnight trading at 765 points, down 1 point from the previous day’s daytime close. While the daily chart shows some caution over RSI overheating signals, the psychological line remains at 50%, and the uptrend appears intact with the 5-day moving average (759 points) serving as support. Resistance is seen at 775 points, with support at 755 points.

If a wait-and-see mood spreads across semiconductor-related names, rotation into domestic demand plays is likely to continue, supporting resilience in the growth market. Investor attention is focused on the details of Nvidia’s earnings and remarks from U.S. Federal Reserve officials at the Jackson Hole symposium, suggesting the market may continue to lack clear direction in the near term.