US Treasury Threatens Sanctions Amid Semiconductor Sector Focus

The US Treasury chief has threatened economic sanctions against any country doing business with Iran as part of an 'economic D-Day' campaign. This comes after a report from CNBC that suggested the Treasury could use its General Account to finance a bond buyback.

Meanwhile, investors are focusing on the semiconductor sector ahead of quarterly earnings from Nvidia and Marvell Technologies later this week. The Nasdaq 100 dropped 1% and the S&P 500 fell 0.3%, while the Dow Jones Industrial Average climbed 0.3%. The iShares Semiconductor ETF dropped 3%.

Some investors have expressed concerns about the Treasury's plan to finance a bond buyback using its General Account, with Citadel Securities labeling it 'financial repression.' Nohshad Shah, head of EMEA fixed-income sales at Citadel Securities, described the policy as failing to solve the underlying drivers of surging yields.