Nasdaq Falls for Second Straight Session as Tech Stocks Drag Markets Lower

U.S. markets closed mixed on Monday, with technology shares leading declines as investors reacted to rising oil prices, higher bond yields, and ongoing geopolitical uncertainty in the Middle East. While the Dow Jones Industrial Average ended higher, both the Nasdaq Composite and S&P 500 finished the session in negative territory.

The Nasdaq Composite dropped 0.51% to settle at 26,090.73, recording its second consecutive losing session. The S&P 500 slipped 0.07% and closed at 7,403.05. Meanwhile, the Dow Jones Industrial Average gained 159.95 points, or 0.32%, to end at 49,686.12.

Semiconductor Stocks Lead Tech Selloff

Technology shares remained under pressure, particularly companies linked to the memory chip sector. The decline began after comments made by Seagate’s CEO during an investor conference raised concerns about production capacity within the industry.

According to the executive, expanding manufacturing facilities could take significant time, fueling fears that chipmakers may struggle to meet rapidly growing demand. Following the remarks:

• Seagate shares tumbled nearly 7%
• Micron Technology declined close to 6%
• Western Digital fell 4.8%
• SanDisk lost more than 5%

Major AI-focused companies also traded lower, with Nvidia and Broadcom both slipping around 1%.

Bond Yield Surge Continues to Pressure Markets

The latest weakness in equities comes after major indexes touched record highs last week. Investor sentiment has since weakened as global bond yields continue to rise sharply.

The yield on the U.S. 30-year Treasury bond recently climbed to levels not seen in almost a year. Similar moves were also seen in long-term government bonds across the United Kingdom and Japan.

Rising yields often negatively impact technology and growth stocks because higher interest rates can reduce the attractiveness of future earnings. Last Friday, the Nasdaq-100 experienced its steepest one-day drop since late March following the jump in yields.

Oil Prices Remain High Amid Middle East Concerns

Energy markets also remained in focus as tensions involving Iran and the United States kept crude oil prices elevated.

• WTI crude oil gained around 3% to close near $108.66 per barrel
• Brent crude advanced over 2% to settle around $112.10 per barrel

Oil prices initially surged on fears of escalating conflict, but later eased slightly after President Donald Trump announced that a planned military action against Iran had been postponed. He stated that discussions involving Gulf nations, including Qatar, Saudi Arabia, and the UAE, were ongoing in hopes of reaching a diplomatic resolution.

Federal Reserve Rate Cut Hopes Fade

Investors are also becoming increasingly concerned about inflation and interest rate policy. Recent economic data has reduced expectations that the Federal Reserve will cut rates anytime soon.

Market experts believe persistently high oil prices could worsen inflation pressures, making it more difficult for the central bank to ease monetary policy in the near future.

Analysts also warn that market volatility may continue if tensions in the Middle East remain unresolved, especially around the strategically important Strait of Hormuz.

Closing Market Numbers

• Dow Jones Industrial Average: Up 159.95 points to 49,686.12
• S&P 500: Down 0.07% to 7,403.05
• Nasdaq Composite: Down 0.51% to 26,090.73

Investors are expected to closely monitor upcoming inflation data, bond market movements, and geopolitical developments for further direction in the stock market.