S&P 500, Nasdaq end down on tech stocks, investors weigh Iran moves
The Dow Jones Industrial Average rose 140.15 points, or 0.26 per cent, to 53,417.16.
On August 24, the S&P 500 and Nasdaq both ended lower due to a decline in technology stocks, as investors considered new U.S. economic measures against Iran and anticipated a week featuring Nvidia earnings and a crucial inflation report. The Trump administration announced potential sanctions on countries trading with Iran, but did not immediately enforce them.
Technology stocks, particularly chip companies, plummeted, dragging the Philadelphia Semiconductor index down. Nvidia fell 2.9%, Micron Technology dropped 5.8%, and Broadcom slipped 2.6%. This affected the S&P 500's Information Technology index. Political opposition to AI data centers also hurt tech firms' sentiment. Texas Governor Greg Abbott warned the AI industry, ordering a pause on new data center approvals due to reliability concerns.
Financials, such as JPMorgan Chase and Visa, gained, helping to stabilize the Dow Jones Industrial Average. The Dow rose 140.15 points (0.26%) to 53,417.16, while the S&P 500 fell 21.51 points (0.28%) to 7,652.86, and the Nasdaq Composite declined 200.26 points (0.76%) to 25,980.19. Concerns over government debt had driven the 30-year yield to a 19-year high before the Treasury announced support measures.
Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium on August 28 would likely influence investors. Nvidia's quarterly results are another key market catalyst; any slowdown in growth could reignite concerns about overvalued stocks. Meanwhile, traders watch the Personal Consumption Expenditures report, a primary inflation gauge, due on August 25.
The Fed is expected to raise rates by 25 basis points by the end of 2026. On the NYSE, Trump announced 50% tariffs on Canadian cars, trucks, and parts, starting January 1, after talks fell through. Stocks of Ford, General Motors, and J.B. Hunt Transport fell accordingly. The NYSE saw more declining issues than advancing ones, with 158 new highs and 116 new lows.
On the Nasdaq, 1,955 stocks rose, while 2,934 fell, with 1,955 new highs and 2,934 new lows. Overall, volume on U.S. exchanges was 14.36 billion shares, compared to the 16.5 billion average over the past 20 trading days.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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