The S&P 500 index relinquished its early gains to close lower, as share price declines in Apple (AAPL) and Tesla Motors (TSLA) offset gains elsewhere.

Chip stocks staged a rebound ahead of a series of corporate earnings reports, with the market poised to test whether the profits of major technology companies can meet the high expectations set for them.

The S&P 500 fell 0.2%, while the Nasdaq 100 index gained less than 0.1%, primarily driven by semiconductor shares.

The Philadelphia Semiconductor Index rose 0.6% on Monday, following its descent into bear market territory last week.

Eight of the S&P 500's 11 major sectors closed lower, with healthcare and materials leading the declines.

Technology, energy, and communication services sectors managed to finish in positive territory.

The NYSE FANG+ Index, representing major tech giants, ended flat.

NVIDIA (NVDA) shares advanced 0.2%, after having risen as much as 2.4% during the session.

Other stocks such as Advanced Micro Devices (AMD), Intel (INTC), and Micron Technology (MU) also moved higher as investors returned to buying shares linked to the artificial intelligence theme.

Storage device maker SanDisk (SNDK) rose 2.7%, while chip and networking equipment maker Marvell Technology (MRVL) gained 3.3%.

Most other large technology stocks posted gains, with Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN) all closing higher.

While the economic data calendar is relatively light this week, more than 80 companies in the S&P 500 are scheduled to report their earnings.

Reports from Alphabet and Intel are expected to provide investors with clearer insights into how AI spending is reshaping the technology sector.

Tesla Motors is set to announce its results on Wednesday.

Louis Navellier, Chief Investment Officer at Navellier & Associates, commented that the recent profit-taking in AI and data center-related stocks lacked a solid foundation.

He expressed an expectation for a significant market rebound, driven by better-than-anticipated earnings reports and positive forward guidance.

Compiled data indicates that as summer trading activity typically quiets down, trading volume for the S&P 500 was approximately 20% below its 30-day average.

At the close of trading, the S&P 500 index was down 0.2% at 7,443.28 points.

The Dow Jones Industrial Average fell 0.6% to 51,839.26 points.

The Nasdaq Composite Index declined 0.1% to 25,508.07 points.

The Nasdaq 100 index was essentially unchanged at 28,604.23 points.

The Russell 2000 index dropped 0.7% to 2,942.429 points.