Dow Edges Up as Geopolitics and Inflation Data Keep Markets on Edge

Wall Street started the week on a mixed note as investors juggled concerns over geopolitical tensions, Treasury yields, and upcoming inflation data. The Dow Jones Industrial Average rose 40 points, while the S&P 500 fell 0.28% and the Nasdaq Composite dropped 0.55%. The technology sector remained under pressure ahead of Nvidia's quarterly earnings, 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. Several semiconductor stocks moved lower, including Micron, Advanced Micro Devices, Broadcom, Coherent, Lumentum, SanDisk, Corning, and Seagate Technology.

The 10-year Treasury yield fell around 4 basis points to 4.7%, while the 30-year yield declined to about 5.23%. 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.