Nasdaq Plunges as Iran Tensions and Treasury Yields Weigh on Tech Stocks
The Nasdaq index took a hit on Monday as investors weighed escalating tensions surrounding Iran, rising Treasury yields, and a packed economic and corporate calendar. The tech-heavy index slipped as technology stocks faced renewed pressure, with Nvidia shares falling 2.44% and the broader technology sector dropping 1.11%. Semiconductor stocks were among the biggest losers, with Marvell Technology and Micron Technology plummeting over 6%, while Sandisk declined sharply.
The weakness in semiconductor stocks has added to the pressure on the index, which is particularly sensitive to movements in bond yields and expectations for Federal Reserve policy. Rising Treasury yields have weighed on technology stocks, with investors concerned that higher borrowing costs could put pressure on valuations, particularly across high-growth companies.
Nvidia's earnings report, scheduled for Wednesday, will be a crucial market event this week. Investors are looking for evidence that strong demand for artificial intelligence infrastructure is continuing to translate into earnings growth. A stronger-than-expected report could provide fresh support for technology stocks, while any indication of slowing demand or weaker-than-expected guidance could increase concerns about stretched AI valuations.