US stocks traded lower on Monday as weakness in major technology shares overshadowed a decline in Treasury yields, while investors assessed escalating tensions between the US and Iran and renewed trade concerns. The Dow Jones Industrial Average rose 0.25%, or 133.36 points, while the S&P 500 declined 0.24%, or 18.63 points. The Nasdaq Composite fell 0.60%, or 157.03 points, as technology stocks came under pressure.
A sharp sell-off in semiconductor stocks dragged down the broader market today. Micron Technology led the industry’s losses with a drop of more than 6%, while Advanced Micro Devices and Broadcom also faced pressure, falling 3% and roughly 2% respectively.
The decline quickly spread across the wider technology sector. Sandisk hit the hardest with a 9% drop, closely followed by steep losses from Coherent and Lumentum, which both fell over 7%. Seagate Technology and Corning added to the downward trend, slipping 6% and 4%.
Treasury yields moved lower after a CNBC report said the US Treasury could use its General Account to fund a government debt buyback operation. The 10-year Treasury yield declined four basis points to 4.70%, while the 30-year Treasury yield fell four basis points to 5.23%. The 30-year yield had climbed above 5.3% last week, reaching levels not seen in nearly two decades.
The latest move comes after Treasury Secretary Scott Bessent said last week that the Treasury’s plan to at least double government debt buybacks over the coming months could be larger than the $4 billion operation announced earlier.
Investor sentiment was also affected by concerns that the US-Iran conflict could continue for longer, potentially keeping crude oil prices elevated and adding to inflationary pressures.
Markets are closely watching the latest developments as the Trump administration prepares to announce additional economic sanctions targeting Iran.
Bessent is expected to outline measures aimed at further isolating Tehran, adding to sanctions that have already been in place for decades. The measures could affect some of Iran’s major trading partners, including China, Turkey and India.
The potential impact on global trade and energy markets has added to uncertainty for investors, particularly as higher oil prices could make it harder for central banks to ease monetary policy.
The United Arab Emirates also said last week that it had cut economic ties with Iran, potentially strengthening Washington’s efforts to increase pressure on Tehran.
Technology investors are also preparing for a crucial week of earnings from major artificial intelligence companies.
Nvidia is scheduled to report its results on Wednesday, followed by Marvell Technology on Thursday. The two earnings reports could provide fresh signals on the strength of AI-related demand and corporate spending on data-centre infrastructure.
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