Dow Hits Record on Iran Deal Hopes; Nasdaq Slides on AMD Miss

The Dow Jones Industrial Average closed at a record high Monday as signs of progress toward a nuclear deal with Iran boosted energy-sensitive sectors. The Nasdaq Composite logged its first decline in five sessions after disappointing earnings from Advanced Micro Devices and other technology names.

The blue-chip index rose 0.3%, powered by gains in oil-sensitive stocks. Crude futures fell more than 2% on the Iran headlines. The S&P 500 edged up 0.1%. The Nasdaq slipped 0.4%, dragged by chip stocks.

Progress in Vienna talks on reviving the 2015 nuclear accord has picked up in recent days. Iranian and Western negotiators narrowed differences on key issues, two people familiar with the discussions said. A deal would clear the way for Iran to export more crude, potentially adding 1 million barrels a day to global supply within months. That prospect pushed Brent crude below $68 a barrel, its lowest since March.

Lower oil prices are a net positive for the broader economy, traders said. The immediate market reaction was a rotation out of energy shares and into transport and consumer stocks. The Dow's record close reflected that sector shift.

AMD fell 3.2% after the chipmaker reported quarterly revenue that missed consensus estimates. The company gave a weaker-than-expected outlook for the current quarter, citing slowing demand from cloud customers. The report weighed on the Philadelphia Semiconductor Index, which dropped 0.8%. Rival Nvidia slipped 1.1% in sympathy. Analysts at Goldman Sachs said the selloff in AMD was more company-specific than sector-wide.

The mixed session extended a pattern of diverging performance between growth and value stocks that has persisted through earnings season. About 78% of S&P 500 companies have reported so far. Beats are running slightly above the five-year average, according to FactSet. The market has punished misses more harshly than usual, traders said.

"The bar was set high after the AI-driven rally in tech, and anything short of perfection is getting sold," said Michael O'Rourke, chief market strategist at JonesTrading. "The Iran news adds a macro crosscurrent that complicates the picture."

Treasury yields edged lower on the session. The 10-year note fell 3 basis points to 4.18%. The oil drop eased inflation concerns. The dollar weakened against major peers. The euro rose above $1.09 for the first time in two weeks.

On the AMD stock page, the Alpha Score sits at 51 out of 100. That mixed reading reflects the competing pressures of a strong product cycle versus a slowing demand environment.

The Federal Reserve's meeting minutes from last week's policy decision are due Wednesday. The next catalyst for the Iran talks is a Thursday deadline for a framework agreement. Diplomats have cautioned that gaps remain.

The split tape – a record Dow alongside a declining Nasdaq – captures the market's uncertainty about the next macro driver. For now, oil and earnings are the two forces pulling in opposite directions.