Market Indexes Play Favorites: Tech Wins, Industrials Sulk on Monday

Alphabet jumped 3% Monday following reports the company developed a new AI chip dubbed "Frozen v2" that runs its Gemini models with greater efficiency. The rally lifted the Nasdaq 0.57% as the broader semiconductor sector gained on the news.

The move highlights continued investor appetite for AI infrastructure plays, though tech saw mixed action. Apple fell 2.4%, contributing to a 0.30% decline in the Dow alongside Caterpillar's 1.2% drop as industrials lagged.

The Frozen v2 chip represents Alphabet's latest effort to bring AI processing in-house and reduce reliance on third-party silicon, a strategy that could compress operating costs as the company scales Gemini deployment across its product suite.

More than 300 companies report earnings this week, with AI capital expenditure guidance expected to dominate investor focus after Monday's chip-driven rally.