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NASDAQ DRAGGED DOWN BY MEGACAPS, SPACEX SPLASHES DOWN

Wall Street returned from the holiday weekend to choppy trading, with few market-moving catalysts to guide the way.

AI-related megacaps were generally weak, with Alphabet GOOGL.O, Amazon AMZN.O, Microsoft MSFT.O and Meta Platforms META.O ending the session down between 2.3% and 5.0%.

SpaceX SPCX.O, which rocketed on its debut to become one of the world's most valuable companies by market cap, came down to Earth in its fifth full day of trading, plunging 16.4% after the company turned to the bond market as it shifts its AI infrastructure spending into hyperdrive.

The Dow Jones Industrial Average .DJI rose 151.15 points, or 0.29%, to 51,715.85, the S&P 500 .SPX lost 27.38 points, or 0.37%, to 7,473.20 and the Nasdaq Composite .IXIC lost 351.33 points, or 1.32%, to 26,166.60.

On the sector level, communication services .SPLRCL and retail .SPXRT were the clear underperformers, while real estate .SPLRCR, airlines .SPCOMAIR and banks .SPXBK were the frontrunners.

Investors kept a wary eye on developments in the Middle East after U.S. Vice President JD Vance declared a "very good foundation for a successful final deal," after Israel's continued attacks on Lebanon endangered the fragile peace deal.

But as of Monday, traffic through the Strait of Hormuz continued and crude prices continued their slide.

Front-month WTI and Brent settled down 2.3% and 3.3%, respectively.

On the economic front, the week started out slowly.

But on Tuesday, S&P Global is expected to release its initial "Flash" June PMI, offering a first look at business growth in the last month of the second quarter.

Things come to a head on Thursday with three high-profile reports from the Commerce Department. First is the Personal Consumption Expenditures (PCE) report, which includes Warsh & Co's preferred inflation yardstick, as well as crucial income, spending and saving data. That will be followed by May data on new orders for durable goods.

Last but not least, the tireless folks at the Department of Commerce are due to post their third and final stab at first-quarter GDP.

Here's your closing snapshot:

(Stephen Culp)

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EARLIER ON LIVE MARKETS:

SPACEX, OTHER PLANNED IPOS NOT SIGNALLING MARKET TOP CLICK HERE

NIKE LEADS ADIDAS IN WORLD CUP MERCH SALES - LSEG CLICK HERE

RECESSION RISKS RECEDE, BUT SO DO GDP ESTIMATES - GS CLICK HERE

US INDEXES MIXED EARLY; NASDAQ DOWN WITH SPACEX CLICK HERE

WALL STREET PRIMED TO SHOW MODEST GAINS AT OPEN CLICK HERE

FED VIEWS ARE DIVERGING. CITI, BOFA CALLS NOW 150 BPS APART CLICK HERE

UK PM QUITS, MARKETS SHRUG - FOR NOW CLICK HERE

STOXX GETS TECH SUPPORT; FTSE SUBDUED WITH EYES ON STARMER CLICK HERE

BEFORE THE BELL: EUROPE SET FOR CAUTIOUS OPEN; EASYJET BID CLICK HERE

ANY PROGRESS IS GOOD WITH HORMUZ AT STAKE CLICK HERE