Closing Bell: Nasdaq Resilient as Tech Outperforms Broad Market Retreat

Key Points:

• All major indices closed lower amid geopolitical-driven rotation, but the Nasdaq outperformed as Technology showed relative resilience.
• WTI crude climbed toward $105 on renewed Strait of Hormuz tensions, weighing heavily on industrial and materials stocks.

Wall Street saw heavy rotation and geopolitical whiplash on Monday as a renewed spike in crude oil prices weighed on sentiment across cyclical sectors. All major indices closed lower, but the Nasdaq proved the most resilient standout. While the Dow Jones Industrial Average and S&P 500 buckled under broad-based selling, the tech-heavy index found support from relative strength in Information Technology, with XLK slipping just 0.15% on the day.

Tech Stands Guard: XLK Defies the Tape

In a session marked by deep losses across most sectors, Technology emerged as a stabilizing force. Megacap tech continued to attract defensive flows, as investors sheltered in high-quality software and AI‑leveraged names ahead of key semiconductor earnings. The relative calm in XLK reinforced the view of tech as a near-term “safe harbor” amid rising macro uncertainty.

The Energy Tax: Industrials and Materials Sink

Rising energy prices acted as a direct headwind for Industrials and Materials, which led the market lower. WTI crude climbed toward the $105 level amid renewed tensions surrounding shipping traffic through the Strait of Hormuz. Higher fuel and raw material costs are increasingly clouding margin outlooks across manufacturing-heavy industries, prompting a tactical retreat from cyclical exposures.

Defensive Disappointment

Despite the risk‑off tone, traditional defensives failed to attract meaningful inflows. Consumer Staples and Real Estate both sold off as higher bond yields and persistent inflation expectations continued to erode the appeal of yield‑sensitive “bond proxy” sectors. Energy was the lone sector to finish decisively higher, benefiting directly from the spike in crude prices.

Economic Data for Tomorrow (ET)

8:30am

Trade Balance

9:45am

Final Services PMI

10:00am

ISM Services PMI

JOLTS Job Openings

New Home Sales

FOMC Member Bowman Speaks

Tentative

New Home Sales (Feb Data)

RCM/TIPP Economic Optimism

12:30pm

FOMC Member Barr Speaks

4:30pm

API Weekly Statistical Bulletin

Earnings Calendar for Tomorrow

Before Market Open: SHOP, ETN, PFE, DUK, AEP, PYPL, ROK, CMI, FISV, APTV

After Market Close: AMD, ANET, EMR, EOG, OXY, EA, LYV, PRU, DVN, SMCI, SWKS

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