Tech stocks retreat, Dow Jones gains

What happened: Berkshire Hathaway's B shares rose over 1% Monday morning while major tech stocks like Nvidia, AMD, Broadcom, Intel, and Micron all declined. Berkshire's cash pile stood at $360 billion at the end of June, with operating earnings up 16% in Q2. Meanwhile, the Dow Jones Industrial Average gained 0.26%, outperforming the broader market as defensive buying countered a sharp tech retreat, with the Nasdaq Composite and S&P 500 dropping 0.76% and 0.28% respectively. Rocket Lab shares, having fallen over 50% from their May peak, showed easing selling pressure.

Market impact: The tech sector's retreat, driven by a rotation following the SpaceX IPO and broader market sentiment, dragged down semiconductor and tech stocks. Berkshire Hathaway's strength, buoyed by its cash position and earnings growth, provided a counterpoint to the tech sell-off. Defensive stocks, as represented by the Dow Jones, benefited from this rotation.

What to watch next: Investors should closely monitor the upcoming earnings reports from major tech companies, scheduled in the coming weeks, which could provide further direction for the sector. Additionally, the evolution of the SpaceX IPO's impact on the broader tech sector will be crucial to watch, as any stabilization or reversal in Rocket Lab's stock could signal a shift in investor sentiment.