Wall Street was headed for a lower open on Monday as investors weighed renewed geopolitical tensions, movements in the Treasury market, and a busy week of inflation data and major technology earnings.
The Dow Jones Industrial Average traded 47 points higher. The S&P 500 fell 0.28%, while the Nasdaq Composite dropped 0.55%.
The weaker start followed a volatile week in which rising government bond yields pressured technology stocks and contributed to losses across the major US indexes.
Treasury yields ease, but concerns remain
Treasury yields moved lower on Monday after reports that the US Treasury could use its General Account to help fund bond buyback operations.
The 10-year Treasury yield fell around 4 basis points to 4.7%, while the 30-year yield declined to about 5.23%.
The longer-dated yield had topped 5.3% last week, reaching levels not seen in nearly two decades.
Investors have also been watching the impact of the US-Iran conflict on oil prices and inflation.
Higher energy costs have raised concerns that inflationary pressures could persist, complicating the outlook for interest rates.
Nvidia earnings put AI trade in focus
The technology sector remained under pressure ahead of Nvidia’s quarterly results, which are expected later this week.
Nvidia’s earnings will be closely watched for signs of whether AI-related spending remains strong enough to support the rally in semiconductor and technology stocks.
Concerns over high valuations have increased after recent weakness across the sector.
Bloomberg News reported over the weekend that Nvidia had notified customers that servers containing its Vera Rubin and Blackwell chips could face price increases of more than 15%.
Several semiconductor stocks moved lower in trading. Micron fell more than 5%, while Advanced Micro Devices and Broadcom also declined.
The iShares Semiconductor ETF dropped 2.6%.
Other technology and AI infrastructure companies also came under pressure, including Coherent, Lumentum, SanDisk, Corning and Seagate Technology.
AI earnings will remain in focus throughout the week, with Nvidia scheduled to report on Wednesday and Marvell Technology expected to release results on Thursday.
Inflation and Iran tensions add to market uncertainty
Geopolitical developments also remained a key concern after the US said it could impose economic sanctions targeting Iran’s trading partners.
Treasury Secretary Scott Bessent has described the planned measures as an “economic D-Day,” with investors monitoring whether additional sanctions could further disrupt energy markets.
Oil prices have already risen on concerns that the conflict could continue to restrict supply and keep inflation elevated.
Markets will also receive the July Personal Consumption Expenditures price index on Wednesday.
The report is the Federal Reserve’s preferred measure of inflation and could influence expectations for interest rates later this year.
Traders have fully priced in one 25-basis-point rate hike by the end of 2026, although softer inflation data earlier this month reduced expectations for an immediate move.
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