S&P 500, Dow, Nasdaq Drop Under Pressure From Elevated Yields As Investors Shrug Off Trump’s Iran Sanction Relief — NVDA, BA, AMD, NVTS, CBRS In Focus
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The S&P 500 ended Monday 0.8% lower, the Nasdaq 100 eased 1.1%, and the Dow Jones Industrial Average fell 0.7%.Trump is willing to give Iran sanctions relief and release frozen funds.Brent crude eased and settled near $105.U.S. stock indices ended Monday lower as elevated Treasury yields continued to dampen the demand for riskier assets, while media reports suggested President Donald Trump was willing to provide Iran some sanctions relief.The S&P 500 ended Monday 0.8% lower, the Nasdaq 100 eased 1.1%, and the Dow Jones Industrial Average fell 0.7%. The Russell 2000, which tracks stocks with small market capitalizations, fell 0.7%.The SPDR S&P 500 ETF (SPY) was down 0.7%, the SPDR Dow Jones Industrial Average ETF (DIA) slipped 0.6%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) fell 1%. Meanwhile, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) fell between 1% and 2%, tracking weakness in Broadcom (AVGO) and Micron Tech (MU) and Advanced Micro Devices (AMD). The broader Vanguard Information Technology ETF (VGT) slipped about 0.7%.Retail sentiment on Stocktwits for QQQ, SPY, and DIA was ‘bullish’ with ‘high’ message volumes.US Market DriversIndexMoveCloseDow Jones Industrial Average-0.7%51,481.51 S&P 500-0.8%7,683.69 Nasdaq 100-1.1%30,276.81 According to media reports from CNN and Axios citing White House officials, President Donald Trump expressed a willingness to offer Iran sanctions relief regarding nuclear issues, pulling crude prices down from their peak levels of the day.Meanwhile, Treasury yields continued their upward trajectory following last week’s substantial advance. The standard 10-year Treasury note yield pushed past 5.2%, as the 30-year bond yield surpassed 5.5%, leaving both hovering near multiyear peaks.Those yields have “come back up meaningfully today, and that’s causing an understandable weakness in the tape,” Justin Bergner, portfolio manager at Gabelli Funds, told CNBC. “The competition for capital with AI hyperscaler spending ... also pressures the consumer with higher rates, so it kind of makes the market more one-sided than it already is.”Recent commentaries from Federal Reserve Governors and officials about soaring inflation amid elevated oil and heightened AI capex spending, and the need for more rate hikes to keep it under control, have caused U.S. yields to jump to their highest in over a decade. Efficiency improvements driven by artificial intelligence are unlikely to cool down near-term inflation, according to Federal Reserve Governor Lisa Cook, who cautioned that heavy infrastructure spending in the sector may actually fuel short-term price increases."Currently, I anticipate that productivity gains will provide modest disinflation within the next few years," Cook said. "However, I do not expect those effects to arrive in time to offset the broadening inflationary pressure later this year."Key Trending StocksNvidia (NVDA): The company’s board authorized a $150 billion increase to its share repurchase program, bringing the remaining authorization to $235 billion. Boeing (BA) shares fell about 7% on Monday, clocking its worst day since April 2025, as investors digested a fresh regulatory setback for the company’s biggest 737 Max 10 variant jet. Advanced Micro Devices Inc. (AMD) on Monday announced the purchase of artificial intelligence startup World Labs in an all-stock transaction valued at approximately $8.2 billion, aiming to strengthen its position against rival Nvidia Corp. (NVDA) Navitas Semiconductor (NVTS): The company said it had been selected for a U.S. Army-sponsored program to develop ultra-high-voltage silicon carbide (SiC) power semiconductor technology. Cerebras Systems Inc. (CBRS) is teaming up with the applied AI research and infrastructure startup Gimlet Labs to bring its wafer-scale AI systems into Gimlet Cloud. For updates and corrections, email newsroom[at]stocktwits[dot]com.
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