U.S. stocks mixed as oil falls and investors eye Fed decision

According to CNBC, U.S. stocks were mixed to start the week after the U.S. and Iran paused military strikes, helping push West Texas Intermediate crude down about 7% to roughly $83 a barrel. The drop in energy prices eased inflation concerns and lifted bond prices, while the 10-year Treasury yield fell but remained near 4.65%. The Federal Reserve begins its two-day July meeting on Tuesday, with its rate decision due Wednesday afternoon; the CME FedWatch tool showed just over a 60% chance of no change in rates and nearly a 40% chance of a hike.

Banks and financials were stronger, with the State Street Financial Select Sector ETF (XLF) hitting a new intraday all-time high. Capital One and Wells Fargo also traded higher, while TJX Companies, Starbucks and Costco advanced. Healthcare outperformed as Johnson & Johnson hit a new all-time high and was up about $20, or roughly 8%, from its post-earnings low two weeks ago. Semiconductor stocks lagged, with the Philadelphia Stock Exchange Semiconductor Index down roughly 4% for a second straight session and about 23% below its June 22 high. Nvidia fell 5% after reports said it was in talks with OpenAI on a $250 billion backstop for one of OpenAI's data center projects.