US stocks today: S&P 500, Nasdaq decline as tech sector falls, US prepares to impose more Iran sanctions

S&P 500 and Nasdaq closed lower on Monday, pulled down by a slide in technology shares. Market participants spent the session digesting the Trump administration's threat of broader secondary sanctions against countries trading with Iran, while also preparing for a pivotal week featuring Nvidia’s upcoming earnings report and key inflation data, according to a Reuters report.

The S&P 500 lost 21.37 points, or 0.28%, to end at 7,653.00 points, while the Nasdaq Composite lost 200.80 points, or 0.77%, to 25,979.66. The Dow Jones Industrial Average rose 141.67 points, or 0.27%, to 53,418.68.

The sell-off hit the semiconductor sector particularly hard, dragging the Philadelphia SE Semiconductor index down as Nvidia, Micron Technology, and Broadcom all posted losses, the Reuters report said.


Beyond geopolitical tensions, tech sentiment took a direct hit from escalating political pushback against AI data centers.

Texas Governor Greg Abbott issued a sharp warning to the AI industry, stating that data center companies "dug their own grave" and deserve the community backlash they are facing after failing to build local support, according to an Axios report on Sunday.

This month, Abbott ordered a pause on approvals of new data center projects through the state's grid interconnection process, citing concerns that a surge in electricity demand could threaten reliability at a time when opposition to the projects is growing.

"The bigger worry we have is the hawkish rhetoric we’re starting to hear from politicians on AI and data centers," said Ohsung Kwon, chief equity strategist at Wells Fargo, according to Reuters. "We’ve been highlighting that as a big risk heading into the midterms."

Financials, however, gained, with JPMorgan Chase and Visa up. They also kept the blue-chip Dow afloat.

EYES ON WARSH'S JACKSON HOLE SPEECH

Concerns over ballooning government debt had pushed the 30-year yield to a 19-year high before the Treasury announced support measures last week. CNBC reported on Monday that Treasury Secretary Scott Bessent could tap the department's near $1 trillion General Account to help fund bond buybacks. Yet, the 30-year U.S. Treasury yield remained above the 5% threshold.

This turbulence has sharpened focus on Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium on Friday, where investors will look for clues on policymakers' reading of the Treasury's rescue efforts.

Quarterly results from AI giant Nvidia are expected to be another key catalyst for markets. Any sign of slowing growth could reignite concerns over stretched valuations.

"Nvidia needs to impress in order to keep one leg of the stock market stable, and Warsh needs to provide clarity on interest rates in order to keep the other leg stable," said Richard Reyle, chief investment officer at Questar Capital Partners.

Investors are also anticipating Wednesday's Personal Consumption Expenditures (PCE) report, the Federal Reserve's preferred measure of inflation. This follows a milder consumer price report earlier in the month that lowered expectations of an immediate interest rate hike, with traders continuing to price in a single 25-basis-point increase by late 2026, according to LSEG data reported by Reuters.

In automotive news, President Trump warned that U.S. tariffs on Canadian cars, trucks, and auto parts would spike to 50% on January 1 following a breakdown in weekend trade negotiations. Reuters reported that the announcement sent shares of General Motors and Ford downward, while logistics provider J.B. Hunt Transport saw a sharp decline.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)