By Purvi Agarwal and Niket Nishant <\/p>\n
Aug 24 (Reuters) – The S&P 500 and the tech-heavy Nasdaq slipped on Monday as investors weighed the potential fallout from the U.S. pledge of an “economic D-Day” against Iran while awaiting AI giant Nvidia’s results and a key inflation \u200creport later this week. <\/p>\n
The moves mark a sober start to a pivotal week that may determine whether equities can shrug off a flare-up \u200cin Middle East tensions and worries tied to a tense bond market, which have interrupted their rally. <\/p>\n
The U.S. has said it could roll out economic sanctions targeting Iran’s trade partners, in \u200bwhat it called “the greatest financial offensive ever.” <\/p>\n
Treasury Secretary Scott Bessent, who warned of an “economic D-Day” in an opinion piece published in the Financial Times, is scheduled to hold a press conference in the afternoon. <\/p>\n
EYES ON WARSH’S JACKSON HOLE SPEECH <\/p>\n
Concerns over surging energy prices and ballooning government debt had pushed U.S. Treasury yields higher last week, with the 30-year yield touching a 19-year peak before the Treasury announced support measures. <\/p>\n
Higher yields hammered growth-oriented technology stocks, causing Wall Street’s three main indexes to post \u200closses last week. <\/p>\n
Bessent could tap Treasury’s near $1 trillion General \u2060Account to help fund bond buybacks, instead of issuing short-term bills, CNBC reported on Monday. The 30-year U.S. Treasury yield declined slightly but remained above the 5% threshold. <\/p>\n
The turbulence has sharpened focus on Federal Reserve Chair Kevin Warsh’s speech at \u2060the Jackson Hole symposium later this week, where investors will parse his remarks for clues on policymakers’ reading of the Treasury’s rescue efforts and the latest economic data. <\/p>\n
Quarterly results from Nvidia, the world’s most valuable company, are expected to be another key catalyst for markets. Any sign of slowing growth could reignite concerns over stretched valuations and \u200bhow \u200bfar the AI-driven rally could run. <\/p>\n
“Chips have become a frothy space. I just don’t \u200bknow what good news hasn’t already been priced in,” said \u200cMarta Norton, chief investment strategist at retirement and wealth services provider Empower. <\/p>\n
“It doesn’t necessarily mean that the fundamentals are challenged. You can have a great company, but that doesn’t necessarily make it a great investment at a given point in time.” <\/p>\n
Trading in megacaps was mixed on Monday. While Apple and Amazon.com each gained less than a percent, Nvidia lost 2.44%. <\/p>\n
The S&P 500 Information Technology sector, down 1.11%, led sectoral losses. Healthcare stocks, a favorite bet for investors seeking diversification beyond AI, also fell 0.57%. <\/p>\n
Most chipmakers, too, declined. Marvell Technology and Micron Technology fell more than 6% each. Sandisk slid 10.62%. <\/p>\n
U.S.-listed shares of Alibaba slipped \u200c1.24% after the Chinese e-commerce giant launched a $10.2 billion share sale to fund its AI \u200bambitions. <\/p>\n
At 09:45 a.m. ET, the S&P 500 fell 20.77 points, or 0.27%, to 7,653.60. The \u200bNasdaq Composite dropped 164.51 points, or 0.63%, to 26,015.94, while the \u200bblue-chip Dow Jones Industrial Average rose 112.18 points, or 0.21%, to 53,389.19. <\/p>\n
U.S.-listed shares of PDD rose 0.44% after the Temu owner \u200creported an 8% rise in second-quarter revenue. <\/p>\n
Markets will also monitor \u200bthe Personal Consumption Expenditures report, the Fed’s \u200bpreferred inflation gauge, due on Wednesday for clues on how the Iran conflict is feeding into broader economic conditions. <\/p>\n
Traders have fully priced in one 25-basis-point interest rate hike by the end of 2026, according to LSEG data. A benign inflation report earlier this month, however, has reduced \u200bthe chances of an immediate increase. <\/p>\n
Advancing issues outnumbered decliners \u200cby a 1.15-to-1 ratio on the NYSE. On the Nasdaq, declining issues outnumbered advancers by a 1.51-to-1 ratio. <\/p>\n
The S&P 500 posted nine \u200bnew 52-week highs and two new lows, while the Nasdaq Composite recorded 31 new highs and 36 new lows. <\/p>\n
(Reporting by Purvi \u200bAgarwal, Niket Nishant and Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar) <\/p>\n","protected":false},"excerpt":{"rendered":"By Purvi Agarwal and Niket Nishant Aug 24 (Reuters) – The S&P 500 and the tech-heavy Nasdaq slipped…\n","protected":false},"author":2,"featured_media":653959,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[79,179,18,19,18929,17,87781,3393,192,292,1746,2712,38974],"class_list":["post-653958","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-eire","tag-ie","tag-iran","tag-ireland","tag-kevin-warsh","tag-nasdaq","tag-nasdaq-composite","tag-nvidia","tag-sp-500","tag-scott-bessent","tag-u-s-treasury"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/117151008306411085","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/653958","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=653958"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/653958\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/653959"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=653958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=653958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=653958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}