Tech Stocks May Be Next to Fall Amid Market Selloff

Market weakness spread beyond tech stocks on Monday as rising Treasury yields and oil prices continued to put pressure on equities. The Dow Jones Industrial Average DJI lost -0.6%, while the S&P 500 (SP500) declined -0.7%, and the Nasdaq Composite COMP fell -0.9%. This comes after President Donald Trump rejected an Iranian proposal for a seven-day ceasefire, exacerbating market concerns.

Seeking Alpha analyst Damir Tokic noted that every S&P sector except technology was lower in September, with the S&P 500 ETF RSP already in a 5% correction. The 10-year Treasury yield continued to climb toward 5.25%, ahead of the labor market report.

Nvidia NVDA shares bucked the trend, gaining more than 1.5% and helping limit the market's losses. However, Tokic questioned whether this divergence can continue, stating that 'this market behavior is unsustainable.' He predicts that technology stocks will join the broader selloff, accelerating the S&P500 decline.