Tech slump splits the tape as yields ease; eyes turn to Nvidia and the Fed

Daily Recap

Stocks opened a key week on a divided note: chip-led selling pulled the S&P 500 and Nasdaq modestly lower while the Dow eked out gains. Long-end Treasury yields eased on buyback chatter, softening the blow to rate‑sensitive areas, and oil slipped as gold firmed—signs of a market hedging into Nvidia’s report and the Fed Chair’s remarks later this week.

Key Headlines & Market Movers

AI leaders lose altitude ahead of Nvidia’s report: Semiconductors and broader tech led the pullback, with Nvidia extending a multi‑session slide as investors reassessed how much AI demand is already in the price. The Nasdaq fell more than the S&P while megacaps were mixed, underscoring a pause in the market’s dominant trade. With Nvidia due Wednesday, even small surprises on growth or margins could swing sentiment across AI‑exposed names.

Treasury support steadies rates, helps cyclicals: Yields ticked lower into the close amid reports Treasury could lean on its General Account to fund long‑end buybacks. That relief helped the Dow outpace tech‑heavy peers as pockets of the bond market the Treasury has tried to calm showed some easing. Still, after recent curve steepening and higher term premiums, rates remain the primary swing factor for equity leadership.

Geopolitics keeps a bid under safety trades: Oil eased while gold firmed as investors weighed tougher sanctions rhetoric around Iran alongside broader Middle East risks. Overseas markets were soft—particularly in Asia—adding to a cautious tone as U.S. trading unfolded. The push‑pull across commodities and equities reflects a market balancing inflation pressures with demand and policy uncertainty.

S&P 500 Sector Performance

Looking Ahead

Wednesday’s PCE inflation read and Nvidia’s results will test whether equities can look past rate and geopolitical noise; Friday’s Jackson Hole keynote from the Fed Chair is the week’s final swing factor. Watch breadth and factor leadership: if yields stay contained, cyclicals could carry the baton; if chip weakness persists, defensives may keep the edge.

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