The tech-focused Nasdaq Composite dropped 115.1 points, or 0.44%, to open at 26,065.32 on Monday. Meanwhile, the benchmark S&P 500 fell 11.0 points, or 0.14%, to 7,663.38, and the Dow Jones Industrial Average opened down 15.1 points, or 0.03%, at 53,261.95, according to Livemint. By mid-morning at 11:15 a.m. Eastern Time, the S&P 500 had slipped 0.4%, the Nasdaq was down 0.7%, and the Dow was up 0.1% as semiconductor stocks and memory-related equities paced a broader decline.
Nasdaq Opens Lower and Semiconductor Stocks Decline
Chip sector losses weighed heavily on technology benchmarks. Shares of Nvidia fell 2.44% ahead of its upcoming quarterly financial results according to Livemint, while Marvell Technology and Micron Technology each dropped more than 6%. Additional premarket and early trading losses hit other artificial intelligence and hardware names, including Western Digital, Seagate Technology, and Sandisk as reported by AOL. U.S.-listed shares of Alibaba also declined 1.24% according to Livemint after the Chinese e-commerce and cloud giant launched a $10.2 billion secondary share offering in Hong Kong to fund its artificial intelligence ambitions as detailed by AOL.
Crude Oil Drops as Markets Await Bessent Iran Press Conference
Crude oil prices fell on Monday as investors took profits following recent gains and digested warnings from the Trump administration regarding Iran according to Livemint. Brent crude futures dropped $1.01, or 1.1%, to $93.38 per barrel, and U.S. West Texas Intermediate (WTI) crude traded at $85.64 a barrel, down $1.42 or 1.6% according to Livemint. (AOL noted WTI futures dropping 2% to around $85 per barrel as reported by AOL.)
The downward movement in energy markets came ahead of a scheduled afternoon press conference by U.S. Treasury Secretary Scott Bessent according to AOL. The Trump administration warned of potential economic sanctions on countries and companies continuing to trade with Iran—a prospective policy package characterized in an opinion article by Bessent in the Financial Times as an “economic D-Day” and described by the Treasury Secretary to CNBC as reported by AOL as the greatest campaign of coordinated economic isolation in the history of the world.
Treasury Yields, Precious Metals, and Macroeconomic Focus
Investors on Monday also monitored government bond yields and upcoming economic catalysts. The yield on the 10-year Treasury note ticked down to around 4.71%, cooling slightly from multi-year highs reached last week when mounting government debt and rising energy prices pressured debt markets according to Livemint. CNBC reported that Bessent could evaluate utilizing the Treasury Department’s nearly $1 trillion General Account to execute bond buybacks rather than issuing short-term Treasury bills according to Livemint.
Precious metals advanced amid the broader market crosscurrents. Spot gold rose 1.6% to $4,677.14 per ounce, while December U.S. gold futures climbed 1.2% to $4,734.70 per ounce, supported by technical buying and a weaker U.S. dollar index according to Livemint. Other metals also posted gains, with spot silver rising 0.8% to $69.52 per ounce, platinum up 0.7% to $1,891.43, and palladium gaining 0.7% to $1,359.41 according to Livemint.
Market participants turned their attention toward a busy economic and corporate calendar for the remainder of the week. In addition to Nvidia’s pending quarterly report—widely viewed as a primary bellwether for the artificial intelligence sector—investors await the release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, which will influence upcoming central bank rate decisions as reported by AOL. Federal Reserve Chair Kevin Warsh is also scheduled to deliver remarks on Friday at the central bank’s annual symposium in Jackson Hole, Wyoming according to AOL.
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