The S&P 500 and Nasdaq Composite ended the trading day in the red, pulled down by a broad sell‑off in technology shares. The S&P 500 lost 21.5 points, or 0.28%, to 7,652.86, while the Nasdaq fell 200.3 points, or 0.76%, to 25,980.19. The Dow Jones Industrial Average rose modestly, gaining 140.2 points, or 0.26%, to 53,417.16, helped by gains in financial stocks such as JPMorgan Chase (+1.4%) and Visa (+3%).
Tech stocks lead the decline
Chip makers bore the brunt of the market weakness. Nvidia dropped 2.9%, Micron Technology fell 5.8%, and Broadcom slid 2.6%, dragging the Philadelphia Semiconductor Index lower and pressuring the S&P 500 Information Technology sector. Investors are also watching upcoming earnings from Nvidia, which could set the tone for the sector in the weeks ahead.
U.S. considers broader sanctions on Iran
The Trump administration announced on Monday a possible expansion of sanctions against countries that do business with Iran, describing the move as an “economic D‑Day.” While the administration stopped short of imposing new penalties, the announcement added uncertainty to global markets and highlighted ongoing geopolitical tension with Tehran.
Texas Governor targets AI data‑center expansion
Governor Greg Abbott delivered a stark warning to the artificial‑intelligence industry, saying data‑center companies have “dug their own grave” and deserve the backlash they are facing after failing to win community support. Abbott has ordered a pause on approvals for new data‑center projects through the state’s grid interconnection process, citing concerns that a surge in electricity demand could threaten reliability.
Wells Fargo chief equity strategist Ohsung Kwon noted that “the bigger worry we have is the hawkish rhetoric we’re starting to hear from politicians on AI and data centers,” and warned that such sentiment could become a risk factor heading into the midterm elections.
Other market drivers
Government debt concerns pushed the 30‑year Treasury yield to a 19‑year high before the Treasury announced support measures last week. Treasury Secretary Scott Bessent indicated the department could tap its near‑$1 trillion General Account to fund bond buybacks, yet the 30‑year yield remained above the 5% threshold.
Investors are also looking ahead to Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium, where guidance on interest‑rate policy is expected. Additionally, the Personal Consumption Expenditures (PCE) report, the Fed’s preferred inflation gauge, is due on Wednesday and could influence expectations for a 25‑basis‑point rate hike later this year.
Trade and auto sector news
President Trump warned that tariffs on cars, trucks and automotive parts from Canada could rise to 50% starting Jan. 1 after trade talks collapsed over the weekend. The warning sent shares of automakers lower, with Ford down 3.3% and General Motors down 1.1%. Trucking firm J.B. Hunt Transport fell about 5.7%.
Overall, declining issues outnumbered advancers on the NYSE by a 1.08‑to‑1 ratio, while on the Nasdaq the ratio was 1.5‑to‑1. The S&P 500 recorded 17 new 52‑week highs and seven new lows; the Nasdaq posted 87 new highs and 98 new lows. Trading volume reached 14.36 billion shares, below the recent 20‑day average of 16.5 billion.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
