Mixed US Stocks Offset by Treasury Rally, Semiconductor Weakness

The US stock market closed mixed on Monday as a broad sell-off in semiconductor shares offset the supportive effect of falling long-term Treasury yields. The Dow Jones Industrial Average rose 140.15 points, or 0.26%, to close at 53,417.16 on the New York Stock Exchange. In contrast, the S&P 500 slipped 21.51 points, or 0.28%, to 7,652.86, while the tech-heavy Nasdaq Composite fell 200.26 points, or 0.77%, to end at 25,980.19.

Semiconductor weakness weighed heavily on the broader market, with Nvidia dropping 2.91% and marking its seventh consecutive daily decline, the longest losing streak since 2022. Other tech companies such as Micron Technology, AMD, Broadcom, Coherent, Lumentum, SanDisk, and Seagate Technology also saw significant declines.

Treasury yields declined on news that the Treasury Department is considering using its Treasury General Account (TGA) as a funding source for debt buybacks. The benchmark 10-year Treasury yield fell more than 3 basis points to 4.704%, while the 30-year yield declined 4 basis points to 5.234%. However, market participants remain skeptical about whether expanded buybacks can sustainably lower long-term rates.

Concerns over a prolonged war with Iran also pressured investor sentiment, but oil prices closed lower on the day, with West Texas Intermediate crude for October delivery settling down 2.35% at $85.01 per barrel on the New York Mercantile Exchange. President Donald Trump's announcement that tariffs on Canadian automobiles, trucks, auto parts, and steel products would rise to 50% effective January 1, 2027, also weighed on equities.