S&P 500 and Nasdaq Slide as Chip Stocks Tumble on Nvidia Price Report and Iran Sanctions Threat

The S&P 500 fell 0.28% to 7,652.86 on Monday and the Nasdaq Composite dropped 0.76% to 25,980.19, pulled lower by a broad sell-off in semiconductor stocks, while the Dow Jones Industrial Average bucked the trend and gained 140 points, or 0.26%, to 53,417.16. The pressure on chip names followed a weekend report that Nvidia plans to raise prices on some of its AI servers, rattling sentiment ahead of the company's earnings later in the week. Micron fell 5.83% to $910.43, Advanced Micro Devices shed more than 3%, and Broadcom declined more than 2%, with the iShares Semiconductor ETF losing 2.7%.

TSMC closed down 2.11% to $410.12. The sell-off also reflected growing political opposition to AI data centers. Adding to the uncertain backdrop, Treasury Secretary Bessent announced an expanded sanctions framework aimed at severing Iran's economic lifelines, warning that any country doing business with Iran could face penalties, though no new penalties were formally imposed Monday.

Markets are now bracing for Nvidia's quarterly results and a closely watched inflation report later in the week. Against the downdraft, a handful of names moved higher, including UiPath and Signet Jewelers, which gained 2.56% to $83.45.