The S&P 500 and Nasdaq Composite closed lower Monday as a semiconductor selloff pressured technology shares ahead of Nvidia’s quarterly results and a closely watched US inflation report. The S&P 500 lost 21.51 points, or 0.28%, to close at 7,652.86, while the Nasdaq fell 200.26 points, or 0.76%, to 25,980.19, according to Reuters. The Dow Jones Industrial Average gained 140.15 points, or 0.26%, to 53,417.16 as financial stocks advanced. Chip stocks led the decline. Nvidia dropped 2.9%, Micron Technology fell 5.8% and Broadcom slid 2.6%, weighing on the S&P 500 Information Technology index and the Philadelphia Semiconductor Index.
Nvidia’s upcoming results are expected to provide a fresh signal on demand for artificial intelligence infrastructure and the sustainability of elevated technology valuations.
Technology sentiment also faced political pressure over AI data centers. Texas Governor Greg Abbott recently ordered a pause on approvals for new data center projects through the state’s grid interconnection process, citing concerns that rising electricity demand could threaten reliability.
Ohsung Kwon, chief equity strategist at Wells Fargo, told Reuters that increasingly hawkish political rhetoric around AI and data centers had become a risk heading into the midterm elections. Investors also assessed the Trump administration’s announcement of a possible expansion of sanctions against countries doing business with Iran.
The administration stopped short of immediately imposing penalties. Concerns over government debt had pushed the 30-year Treasury yield to a 19-year high before support measures announced last week, and the yield remained above 5% on Monday. Financial shares offset part of the technology weakness, with JPMorgan Chase rising 1.4% and Visa gaining 3%.
Reuters reported that investors are now focused on Federal Reserve Chair Kevin Warsh’s Jackson Hole speech on Friday for indications about monetary policy and the Treasury’s recent market support. The Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge, is due Wednesday. LSEG data showed traders pricing in one 25-basis-point interest rate increase by the end of 2026. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
