Nvidia [Reuters]
Nvidia [Reuters]

US stocks closed mixed Monday as a broad selloff in technology shares — led by AI and semiconductor names — dragged on major indexes.

Nvidia extended its losing streak to seven consecutive sessions, while Micron Technology and Broadcom also fell sharply, pulling the NASDAQ and the S&P 500 lower. The Dow Jones Industrial Average managed to advance, buoyed by gains in financial stocks including JPMorgan Chase and Visa.

The Dow rose 140.15 points, or 0.26 percent, to close at 53,417.16. The S&P 500 fell 21.51 points, or 0.28 percent, to 7,652.86, while the tech-heavy NASDAQ Composite dropped 200.26 points, or 0.76 percent, to 25,980.19.

Weakness in AI-related technology stocks weighed on both the S&P 500 and the NASDAQ. Nvidia, Micron Technology and Broadcom all declined, dragging the Philadelphia Semiconductor Index lower as well.

Nvidia, which is set to report earnings this week, fell 2.9 percent, extending its losing streak to seven straight trading sessions — the longest such run since September 2022. Micron Technology dropped 5.8 percent and Broadcom shed 2.6 percent, reflecting broad selling pressure across the technology sector.

Growing concerns about regulatory pressure on AI data centers from lawmakers also weighed on investor sentiment. Financial stocks, by contrast, moved higher, with JPMorgan Chase and Visa lending support to the Dow.

The Trump administration's announcement of additional economic pressure measures against Iran also drew market attention. Treasury Secretary Bessent held a press conference Monday, saying: "On Tuesday, we are launching 'Operation Economic Outcast' to cut off every option available to the Iranian regime."

Under the plan, secondary sanctions will be imposed on entities in other countries that conduct transactions with Iran involving digital assets, technology, gold, aviation and shipping. More than 60 organizations, individuals and vessels worldwide that help the Iranian regime acquire nuclear and missile technology, conduct cyber operations or generate oil revenues were designated as new sanctions targets.

International oil prices fell Monday, partly on profit-taking following the announcement. Both October Brent crude and West Texas Intermediate dropped 2.35 percent.

US Treasury yields declined after reports that the Treasury Department could tap its Treasury General Account — which holds nearly $1 trillion — to fund bond buybacks.

The yield on the 30-year Treasury bond fell more than 4 basis points to 5.23 percent, while the 10-year yield dropped more than 3 basis points to around 4.70 percent.

Spot gold prices climbed as high as $4,680 per ounce during trading Monday, their highest level in roughly three months since May 14. The move reflected a weakening dollar following the Treasury's recent announcement of expanded long-term bond buybacks, compounded by technical buying.

Market attention is also turning to a scheduled speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium on Friday.

Investors are expected to look for clues about the Fed's assessment of the Treasury's recent intervention in the bond market and the likely path of interest rates going forward.

The personal consumption expenditures price index, due Wednesday, and Nvidia's earnings results are seen as the other major market variables this week.

Analysts note that any signs of slowing growth in Nvidia's results could reignite concerns about the lofty valuations of AI-related stocks.


th5@heraldcorp.com