U.S. Stocks Erase Morning Gains, Tech Slides

U.S. stocks gave up an early rally Monday as continued volatility in technology and AI shares weighed on markets: the S&P 500 fell 0.5% and the Nasdaq dropped 1.1%, while the Dow gained 0.4%. Investors remain concerned that Big Tech’s enormous spending on AI data centers may not produce sufficient returns, and that AI could undermine established businesses such as Google’s search operation. Oil prices fell sharply amid hopes that the United States and Iran could reach an agreement to end the war, though uncertainty over negotiations has contributed to swings in both oil and stock markets. President Donald Trump said talks were going well, while Iran outlined conditions for a deal and said it could reopen the Strait of Hormuz if negotiations progress.