U.S. equities ended mixed on Monday as technology shares declined, led by chipmakers, while blue-chip benchmarks posted modest gains. The Dow Jones Industrial Average advanced 0.26% to 53,417.16, the S&P 500 fell 0.28% to 7,652.86, and the Nasdaq 100 dropped 0.97% to 29,023.18.
Technology stocks faced pressure amid concerns over Nvidia’s upcoming earnings report, due after the close on Wednesday. Investors questioned whether the chip giant could meet elevated expectations following four consecutive quarters of post-earnings declines, despite prior positive surprises. Speculation over potential price hikes for AI chips due to rising production costs also weighed on sentiment, with Nvidia down 2.9% and Tesla down 3.8% among the so-called Magnificent Seven.
Tesla’s decline was compounded by a recall of nearly 3 million electric vehicles in China, the largest such action by an automaker in the country. The move, triggered by safety issues with retractable door handles, affects both domestically produced and imported models. Tesla’s stock has faced persistent headwinds this year, compounded by broader concerns over demand and competition in the EV market.
Elsewhere, Arm Holdings, Applied Materials, Intel, Micron, and Sandisk each fell between 2% and 6.5%, extending losses in the semiconductor sector. H.B. Fuller dropped 1.2% after its board rejected Ancora’s takeover bid for its Building Adhesives division, citing insufficient value. Meanwhile, Hims & Hers Health slumped 8.0% following a warning from Visa over excessive customer complaints related to its weight-loss subscription products.
Macro developments provided limited impetus. The U.S. government’s announcement of expanded economic sanctions against Iran, described by Treasury Secretary Scott Bessent as a bid to isolate the regime financially, had minimal impact on U.S. markets. The move aims to pressure Iran into reopening the Strait of Hormuz, a critical shipping route, though Tehran warned of severe consequences from any economic conflict.
