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Tech and Chip Stocks Drag Nasdaq as Iran Sanctions, Nvidia Earnings Jolt US Markets

Published on August 25, 2026

Technology and semiconductor stocks led a fresh pullback in U.S. equities to start the week, as investors digested expanded U.S. sanctions on Iran and braced for key artificial intelligence earnings and inflation data. The Nasdaq and S&P 500 fell while the Dow edged higher, underscoring growing caution around the AI trade and tech-sector leadership.

Traders on the floor of the New York Stock Exchange watch technology stocks as major U.S. indexes trade mixed.

Tech-led pullback puts AI and geopolitical risk back at the center of U.S. markets

U.S. equities started the week on a fragile footing as technology and semiconductor stocks led a broad pullback, with investors weighing newly expanded U.S. sanctions on Iran and a pivotal stretch for artificial intelligence bellwethers.

Major indexes finished Monday mixed. The S&P 500 slipped 0.3% while the Nasdaq Composite fell 0.8%, both pressured by renewed selling in tech shares, even as the Dow Jones Industrial Average added 0.3% on the back of more defensive blue-chip names, according to AP and Barron’s.

Sanctions shock collides with AI fatigue

Semiconductor and broader technology names were the focal point of the latest downdraft, with multiple outlets highlighting chip stocks as the primary drag on the Nasdaq and S&P 500.

Yahoo Finance reported that U.S. stocks closed mixed on Monday as semiconductor stocks fell and Treasury Secretary Scott Bessent unveiled “Operation Economic Outcast,” a package of expanded sanctions aimed at increasing economic pressure on Iran, contributing to risk-off sentiment in tech-linked assets (Yahoo Finance). The same report noted the S&P 500 declined by about 0.3% and the Nasdaq dropped roughly 0.8%, while the Dow finished in the green.

Barron’s described Monday as a “make-or-break week” for markets, with technology stocks tumbling again as Wall Street grew more cautious on artificial intelligence-linked shares ahead of a key earnings test for the sector (Barron’s). The publication said the Nasdaq fell 0.8%, the Dow rose 140 points, or 0.3%, and the S&P 500 dipped 0.3%, reinforcing the picture of tech underperformance versus more diversified or value-oriented benchmarks.

Reuters similarly flagged that the S&P 500 and Nasdaq ended lower, pulled down by technology stocks, as investors weighed fresh U.S. economic pressure against Iran and looked ahead to a week including Nvidia earnings and a closely watched U.S. inflation print (Reuters).

Index performance underscores rotation pressure

AP data show the S&P 500 fell 21.51 points to 7,652.86, the Dow rose 140.15 points to 53,417.16, and the Nasdaq lost 200.26 points to 25,980.19 on Monday (AP). The Russell 2000 index of smaller companies also declined 0.8%, indicating that weakness was not confined solely to mega-cap growth.

Reuters reported identical point and percentage moves, emphasizing that the Dow’s gain contrasted with the declines in the S&P 500 and Nasdaq as tech sold off while lower Treasury yields and falling oil prices offered partial support to other sectors (Reuters).

A separate Yahoo Finance midday update showed the Dow outperforming intraday, up 0.27%, while the S&P 500 and Nasdaq were in the red as tech-sector volatility offset blue-chip gains (Yahoo Finance).

Macro and policy backdrop

Multiple outlets framed the session within a broader macro and policy narrative. Yahoo Finance highlighted that investors were digesting expanded Iran sanctions, failed U.S.-Canada trade talks and reciprocal tariff threats, along with upcoming earnings from chipmaking giant Nvidia and the Federal Reserve’s annual Jackson Hole symposium (Yahoo Finance).

Reuters similarly noted that markets were bracing for a week featuring Nvidia’s earnings and a key inflation report, with tech under pressure despite a dip in U.S. Treasury yields and softer oil prices (Reuters).

A separate market recap from Yahoo Finance pointed out that all three major indexes had closed higher on Friday after a prior bond-yield-driven selloff, with health care shares outperforming and long-duration Treasury yields rising, underscoring the backdrop of rate volatility and sector rotation into the current week (Yahoo Finance).

What to watch

Investors now face a confluence of catalysts that could extend or reverse the tech-led pullback:

  • Nvidia earnings and AI sentiment: Several reports underscored Nvidia’s upcoming results as a crucial test of investor enthusiasm for AI-related spending and profitability in the semiconductor complex (Reuters, Barron’s).
  • Iran sanctions and broader geopolitical risk: The market will be watching how “Operation Economic Outcast” and any subsequent measures affect energy markets, risk assets and sector leadership, particularly in globally exposed tech and industrial names (Yahoo Finance).
  • Upcoming U.S. inflation data and Jackson Hole commentary: Both could influence expectations for Federal Reserve policy, with implications for long-duration growth stocks and sectors sensitive to real yields (Yahoo Finance).

For now, the latest session’s pattern—Dow resilience against S&P 500 and Nasdaq weakness—positions technology and semiconductor shares at the heart of market risk as Wall Street reassesses how much it is willing to pay for the AI trade amid a more charged geopolitical backdrop.

Tickers

NVDA

Sources