S&P 500 and Nasdaq fall, market pressure due to selling in chip stocks; Nvidia earnings under scrutiny
New York, August 24, 2026: The US stock market started the week on a weak note. The S&P 500 and Nasdaq Composite closed lower on Monday, while the Dow Jones Industrial Average managed to gain. Heavy selling in semiconductor and technology stocks put pressure on the broader market. Investors are now watching US inflation data, Treasury yields, upcoming comments from the Federal Reserve, and earnings results from major companies in the artificial intelligence sector.
S&P 500 closed down 0.28% – The S&P 500 Index fell 0.28% to close at 7,652.86 points on Monday’s trading session. The technology-heavy Nasdaq Composite fell 0.76% to 25,980.19 points. In contrast, the Dow Jones Industrial Average rose 140.15 points, or 0.26%, to close at 53,417.16.
Semiconductor stocks were the most pressured in the market. Shares of Micron Technology fell nearly 5.8%, while shares of Advanced Micro Devices (AMD) and Broadcom also saw sharp declines. The iShares Semiconductor ETF (SOXX), which tracks the semiconductor sector, fell nearly 2.7%.
Why did the selling in S&P 500 Chip Stocks Fall? Several factors are being cited as the reason behind the decline in technology and semiconductor stocks. The recent rise in US and global bond yields, concerns about inflation, and geopolitical tensions have impacted investors’ risk appetite. Shares of Coherent and Lumentum also fell more than 4%. Sandisk fell nearly 6%, and Seagate Technology fell nearly 6.5%. Corning shares also saw a decline of about 3%.
This decline comes at a time when shares of Artificial Intelligence and Semiconductor companies have attracted considerable investor attention in recent months. Therefore, there is a constant discussion in the market regarding valuation and earnings growth.
Decline in US Treasury Yields – S&P 500 Falls On Monday, some relief was seen in US Treasury Yields. The 10-Year Treasury Note Yield fell by more than 3 basis points to around 4.704%. The 30-Year Treasury Bond Yield fell by more than 4 basis points to around 5.234%. The long-term bond market experienced initial relief after the Treasury Department reported a possible strategy related to government debt buyback. However, investors’ concerns have not completely subsided.
S&P 500 Falls – Higher bond yields can typically put pressure on growth and technology stocks, as the present value of future earnings is affected. For this reason, investors are now closely monitoring the Federal Reserve’s monetary policy and upcoming economic data.
S&P 500 Falls, US-Iran War, and Oil Prices Also a Cause of Concern – S&P 500 Falls Geopolitical tensions also remain significant risks for the US stock market. Investors are concerned that the US-Iran War could continue for a long time, which could keep oil prices high and increase inflationary pressure. Furthermore, President Donald Trump’s announcement to increase tariffs on cars, trucks, automotive parts, and steel imported from Canada also impacted market sentiment. The proposed changes are said to be effective from January 1, 2027.
S&P 500 Falls – This Week’s Focus on Inflation Data and Nvidia Earnings – S&P 500 Falls The biggest focus for investors this week could be the US Personal Consumption Expenditures (PCE) Price Index. July’s PCE Inflation Data is expected on Wednesday. Nvidia’s earnings report in the Artificial Intelligence sector will also be crucial for the market. Nvidia’s results could provide investors with important clues about AI infrastructure, data center demand, and the state of the semiconductor industry. Marvell Technology is also among the major companies releasing its earnings results this week.
What will be the future direction of the US stock market after the S&P 500 Falls? According to market analysts, the future direction of the US stock market will depend on several key indicators. These include US Inflation Rate, Federal Reserve Interest Rate Policy, Treasury Yields, Corporate Earnings, Oil Prices, and Geopolitical Risks. If inflation remains under control as expected and corporate earnings remain strong, the market could find further support. However, prolonged high bond yields and geopolitical tensions could pose challenges for technology and growth stocks.
S&P 500 Falls – Investors are now eyeing upcoming economic data and quarterly earnings results from major technology companies like Nvidia. These figures could reveal the market’s direction after the recent rally in AI and semiconductor stocks.
FAQs: S&P 500 Falls and the US Stock Market
Q1. How much did the S&P 500 fall on Monday?
The S&P 500 fell 0.28% on Monday, closing at 7,652.86 points.
Q2. How much did the Nasdaq fall?
The Nasdaq Composite fell 0.76%, closing at 25,980.19 points.
Q3. Why did the Dow Jones rise?
The Dow Jones Industrial Average closed with a gain of 140.15 points, or 0.26%.
Q4. Why did chip stocks fall?
Investors sold technology and semiconductor stocks amid higher bond yields, inflation, and geopolitical risks.
Q5. What US economic data is important this week?
The July Personal Consumption Expenditures (PCE) Price Index will be important inflation data.
Q6. Why are Nvidia earnings important?
Nvidia’s results could provide important signals to the market about the state of Artificial Intelligence, Semiconductor, and Data Center demand.
Q7. What risks are watching the US Stock Market?
Inflation, Federal Reserve Interest Rates, Treasury Yields, Oil Prices, Tariffs, and Geopolitical Tensions are the key risks.
S&P 500 Falls, Disclaimer: This news is for informational purposes only. Investing in the stock market is subject to market risk. Consult a qualified financial advisor before making any investment decisions.
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