NEW YORK, August 17, 2026, 09:58 EDT
- The Nasdaq began trading up 0.21%, as the Dow edged down 0.13% at the open.
- Shares of AI memory and connectivity companies advanced, while the S&P 500 remained mostly unchanged.
- Oil prices and geopolitical tensions curbed gains across broader markets.
U.S. stocks saw a mixed start on Monday, as the Nasdaq rose 0.21% and the S&P 500 edged up 0.06%, while the Dow slipped 0.13%. At the open, the Nasdaq-Dow difference stood at 0.34 percentage point.
The spread increased to approximately 0.5 point during the start of the session. The Dow slipped around 0.3%, as the Nasdaq posted a 0.2% advance. The S&P 500 was little changed.
The message from investors was unambiguous. Demand centered on AI infrastructure, rather than the broader market. While the index appeared stable, market leadership remained limited and strikingly focused.
Comparison of U.S. indexes
| Index | Opening move | Early-trade move | Shift after the bell |
|---|---|---|---|
| Dow Jones Industrial Average | -0.13% | Down around -0.3% | Moved lower |
| S&P 500 | +0.06% | Little changed | Erased earlier increase |
| Nasdaq Composite | +0.21% | Up roughly +0.2% | Stayed steady |
| Nasdaq minus Dow | +0.34 point | Up about +0.5 point | Spread rose by about 0.16 point |
The gap widened despite headline volatility remaining subdued. Typically, this carries more significance than an unchanged S&P. It highlights areas where investors continue to pay a premium for growth.
Initial movers and underperformers
| Company | Early move | Market read |
|---|---|---|
| Astera Labs NASDAQ:ALAB | Up around 9% | AI connectivity stands out |
| Marvell Technology NASDAQ:MRVL | Up roughly 5% | AI networking momentum |
| Sandisk NASDAQ:SNDK | Gains over 4% | NAND, memory see higher demand |
| Micron Technology NASDAQ:MU | Rises more than 3% | DRAM prices get support |
| Nvidia NASDAQ:NVDA | Up close to 1% | Megacap lends support |
| Nebius Group NASDAQ:NBIS | Down around 2% | AI trade shows selectivity |
| Workday NASDAQ:WDAY | Down nearly 2% | Software trails hardware |
| Cisco Systems NASDAQ:CSCO | Off about 0.6% | Legacy networking faces pressure |
Memory stocks benefited from policy backing as well. Commerce Secretary Howard Lutnick stated that the administration had urged Apple NASDAQ:AAPL not to purchase memory chips from China. Shares of Sandisk and Micron rose further in after-hours trading, reinforcing earlier premarket gains.
Cross-asset markets provided little reassurance. Brent crude climbed roughly 1% to $89.42, and the yield on the 10-year Treasury remained close to 4.69%. Gold advanced, while the dollar slipped to its lowest since June. The probability of a rate hike in September declined to 30%, down from 50% one week ago.
The rally now hinges on earnings reports and anticipated interest rate moves. Investors are watching for the Federal Reserve minutes due Wednesday, along with earnings from top retailers later in the week. A more dovish policy stance could benefit growth stock valuations, while higher oil prices may have the opposite effect.
Top analyst picks among the frontrunners
| Stock | Analyst | Rating | Price target | Latest cited date |
|---|---|---|---|---|
| Astera Labs | RBC Capital TSX:RY | Outperform | $500 | August 5 |
| Marvell Technology | Stifel Financial NYSE:SF | Buy | $321 | June 2 |
| Sandisk | JPMorgan Chase NYSE:JPM | Overweight | $2,250 | August 14 |
| Sandisk | Citigroup NYSE:C | Buy | $2,100 | August 14 |
Analyst calls boosted hardware at the open. RBC lifted its price target for Astera to $500, while Stifel reiterated its Buy rating on Marvell. Meanwhile, J.P. Morgan and Citi became more positive on Sandisk.
AMP chief economist Shane Oliver stated his main expectation is for “oil prices will stay in a $70-$100 range.” He also noted there was a tail risk if supply disruptions persisted. Reuters
Risks: Early momentum may shift quickly. Rising oil prices, sturdier long-term yields, or fresh tensions in the Middle East could undermine the Nasdaq’s gains. Limited market breadth adds to the potential downside if AI hardware stocks fall short of expectations.
Currently, investors are favoring tangible AI infrastructure instead of widespread growth opportunities. The key question is if this outperformance will be enough to drive a firm advance in the S&P 500.
Related articles: NASDAQ:CSCO
