U.S. equities opened the week with divergent performance as the Dow Jones Industrial Average edged higher while the S&P 500 and Nasdaq 100 declined, weighed by chip sector jitters and geopolitical risks.
The Dow Jones Industrial Average rose 0.3% to 53,422 points in early trade, while the S&P 500 fell 0.4% to 7,645 and the Nasdaq 100 dropped 1.3% to 28,920. Among the so-called Magnificent Seven tech giants, Nvidia led declines with a 2.5% drop, followed by Tesla at 2.4%. The remaining five members posted gains, with Alphabet’s parent company leading at 1.1%, followed by Meta and Microsoft at 0.4% each.
Analysts noted that Nvidia’s stock has retreated after each of its last four earnings reports, as positive surprises have become less pronounced compared with prior periods. The chipmaker is scheduled to release second-quarter results on Wednesday, with investors focusing less on growth and more on whether the company can surpass elevated expectations. Pre-market, Nvidia’s shares were down 0.1%, while Intel fell 1.9% and AMD slipped 1.7%.
Geopolitical tensions added pressure, with U.S. Treasury Secretary Scott Bessent set to unveil what he described as the "harshest sanctions in history" against Iran in a Monday press conference. The move aims to force Iran to reopen the Strait of Hormuz, a critical chokepoint for global oil shipments. Iran warned of severe consequences in response to what it termed an economic war.
Oil prices eased from last week’s gains, with Brent crude for October delivery trading 1.1% lower at $93.10 per barrel, paring a roughly 5% weekly advance. The retreat followed a robust performance driven by Middle East supply risks and elevated demand expectations.
In Europe, the Swiss Market Index (SMI) slipped 0.26% to 14,451 points, paring earlier losses. Richemont led gains at 1.67%, while Roche’s participation certificates fell 1.46%. ABB shares declined 1.35% to 79.12 Swiss francs after giving up earlier gains. Futures pointed to a cautious start in the U.S., with Dow Jones futures down 0.19%, S&P 500 futures down 0.32%, and Nasdaq 100 futures down 0.80%.
Market focus remains on three key events this week: the U.S. Treasury’s sanctions announcement on Iran, Nvidia’s earnings release on Wednesday, and the Federal Reserve’s annual Jackson Hole symposium starting Thursday. Fed Chair Kevin Warsh’s speech on Friday is expected to provide clues on the central bank’s policy path amid elevated oil prices and rising bond yields. Analysts at eToro noted that the tone of Warsh’s remarks—whether emphasizing inflation or bond market concerns—could set the tone for near-term market sentiment.
In corporate news, adhesives manufacturer H.B. Fuller’s shares fell 0.8% after its board rejected an offer from investor Ancora for its Building Adhesives division. Industrial equipment maker Invent Electric declined 1.1% after agreeing to acquire Maverick Power, a private data center equipment supplier, for $1.75 billion. Regenxbio plunged 23% after the FDA imposed a clinical hold on its experimental gene therapy for Hunter syndrome.
