Tech stocks drag broader market lower
The S&P 500 and the Nasdaq have closed down, dragged by declines in the megacap technology stocks including Alphabet while investors assessed developments in US-Iran negotiations.
The Dow closed higher, boosted by the healthcare and industrial sectors.
Optimism about artificial intelligence has supported Wall Street's recent rally but analysts noted that more investors have been questioning lofty spending on infrastructure expansion by hyperscalers.
Seven of the 11 major S&P sectors closed higher, led by real estate and energy stocks.
Communication Services was a laggard, falling 3.8 per cent.
The Dow Jones Industrial Average rose 148.01 points, or 0.29 per cent, to 51,712.71, the S&P 500 lost 27.79 points, or 0.37 per cent, to 7,472.79 and the Nasdaq Composite lost 351.33 points, or 1.32 per cent, to 26,166.60.
Markets watch Iran negotiations and oil prices
Oil prices fell as the US and Iran agreed on a road map toward a final deal within 60 days.
US and Iranian officials made "great progress" at the first round of their talks in Switzerland that ended early on Monday, mediators said, although tensions persisted over Lebanon and the Strait of Hormuz.
Fed inflation test looms
A focus this week will be on Thursday's Personal Consumption Expenditures (PCE) data, the Fed's preferred gauge of core inflation.
A stronger-than-expected reading could reinforce expectations of a hawkish Federal Reserve after Warsh underscored the need to curb inflation at last week's meeting.
Markets currently expect a 25-basis-point rate hike from the Fed in September, according to LSEG data.
Declining issues outnumbered advancers by a 1.32-to-1 ratio on the NYSE.
There were 345 new highs and 200 new lows on the NYSE.
On the Nasdaq, 2,078 stocks rose and 2,773 fell as declining issues outnumbered advancers by a 1.33-to-1 ratio.
The S&P 500 posted 29 new 52-week highs and 33 new lows while the Nasdaq Composite recorded 144 new highs and 186 new lows.
Volume on US exchanges was 22.97 billion shares, compared with the 22.12 billion average for the full session over the last 20 trading days.
