U.S. equities finished Monday's session mixed, with losses in major technology names overshadowing a retreat in Treasury yields. The Dow Jones Industrial Average climbed 140.14 points, or 0.26%, to close at 53,417.16, while the S&P 500 slipped 21.51 points, or 0.28%, to 7,652.86. The Nasdaq Composite dropped 200.26 points, or 0.76%, settling at 25,980.19, dragged lower by a selloff in semiconductor stocks.
Micron Technology tumbled 5.8%, while AMD and Broadcom each fell more than 3% and 2%, respectively. The iShares Semiconductor ETF (SOXX) declined 2.7%. Other tech names also came under pressure, with Coherent and Lumentum each losing over 4%, SanDisk sliding 6%, Corning dropping nearly 3%, and Seagate Technology down 6.5%.
Among the so-called Magnificent Seven, performance was mixed. NVIDIA dropped 2.91%, marking its seventh consecutive session of declines—the longest losing streak since 2022. Meanwhile, Meta rose 1.66%, Amazon gained 1.33%, Microsoft added 0.84%, Alphabet climbed 0.83%, and Apple edged up 0.32%. Tesla, however, fell 3.83%.
Cryptocurrency-related stocks retreated as well, with Robinhood down more than 4%, Coinbase losing 3.7%, and IREN sliding 4.9%.
Treasury yields moved lower following reports that the U.S. Treasury may tap its general account to fund buyback operations. The 10-year yield fell more than 3 basis points to 4.704%, while the 30-year yield—which had surged past 5.3% last week to touch a near 20-year high—dropped 4 basis points to 5.234%. Treasury Secretary Scott Bessent indicated last week that the government plans to at least double the size of its debt buybacks over the coming months, potentially exceeding the $4 billion announced for that week. The initial announcement offered some relief at the long end of the yield curve, but it proved short-lived.
Persistent rises in global bond yields have continued to pressure equity markets, with interest rates in Japan, France, and Germany all climbing to multi-year highs. Investors are also worried that a prolonged U.S.-Iran conflict could keep oil prices elevated and stoke inflation.
"The Treasury is trying to cap long-term rates by issuing more short-term bills as a financing tool, which would tie U.S. government interest costs more closely to the Fed's actions on the federal funds rate," said Peter Boockvar, chief investment officer at One Point BFG Wealth Partners. "I don't think this is something Kevin Warsh will discuss in his Friday speech, but it's a new factor he'll have to contend with."
Federal Reserve Chair Kevin Warsh is expected to deliver remarks at the Fed's annual symposium in Jackson Hole, Wyoming. Adding to Monday's downbeat sentiment, President Donald Trump announced that the U.S. will raise tariffs to 50% on all automobiles, trucks—regardless of size—auto parts, and steel imported from Canada, effective January 1, 2027.
"We're in a summer lull," said Robert Conzo, CEO of The Wealth Alliance. However, he added that if earnings growth remains robust and inflation data aligns with expectations, equity market conditions should be "pretty decent."
Investors will receive fresh inflation data this week in the form of the July Personal Consumption Expenditures price index, due Wednesday. Artificial intelligence will also take center stage, with NVIDIA and Marvell Technology set to report earnings after the bell on Wednesday and Thursday, respectively.
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