Nasdaq 100 Falls 0.69% in Early Trade as Tech Selloff Deepens; Dow Jones Gains 0.15% Amid Iran Sanctions, Nvidia Earnings Jitters
Authored By HDFC SKY | Last Modified: Aug 24, 2026 08:37 PM IST
Mumbai, Aug 24: US stock markets opened with a mixed performance on Monday as investors braced for a high-stakes week defined by escalating geopolitical tensions, the upcoming Nvidia earnings report, and the Federal Reserve’s Jackson Hole Symposium.
The technology-heavy Nasdaq Composite (^IXIC) dropped 179.44 points or 0.69% to 26,001.01 in the opening minutes, while the Dow Jones Industrial Average (^DJI) gained 78.97 points or 0.15% to 53,355.98. The broader S&P 500 (^GSPC) fell 21.95 points or 0.29% to 7,652.42, reflecting the weight of declining tech stocks.
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Market sentiment weakened after US-Canada trade talks collapsed, prompting fresh tariffs and retaliatory threats. Investors are also watching Treasury Secretary Scott Bessent’s expected announcement of an “economic D-Day” sanctions campaign against Iran.
The mixed opening follows a losing week for the S&P 500 and Nasdaq, which ended their three-week winning streaks, while the Dow posted a second straight weekly decline. Rising bond yields, inflation concerns and Middle East tensions continue to weigh on risk appetite.
Tech Selloff Deepens as Chip Stocks Tumble; Nasdaq 100 Suffers Broad-Based Losses
The Nasdaq Composite’s decline was driven by widespread selling in the semiconductor sector, with the iShares Semiconductor ETF (SOXX) sliding nearly 2% in early trading. Key components of the Nasdaq 100 heatmap showed significant weakness, with Marvell Technology (MRVL) plunging 6.31%, Micron Technology (MU) falling 5.87%, and Western Digital (WDC) dropping 4.88%. Other major decliners included Seagate Technology (STX) down 4.91%, Advanced Micro Devices (AMD) losing 3.33%, Palantir Technologies (PLTR) falling 3.47%, and Intel (INTC) declining 3.46%.
The selloff was not confined to chipmakers. Tesla (TSLA) shares dropped 2.44% after surging more than 5% on Friday, while Nvidia (NVDA), the world’s most valuable company and a bellwether for the artificial intelligence trade, edged lower by 0.84%. However, some Magnificent Seven stocks showed resilience, with Amazon (AMZN) rising 1.31%, Apple (AAPL) gaining 0.71%, Alphabet (GOOGL) up 0.76%, Meta Platforms (META) adding 0.22%, and Microsoft (MSFT) advancing 0.16%.
The Nasdaq 100 heatmap, derived from Invesco QQQ Trust holdings, revealed that technology and consumer cyclical sectors were the primary laggards. In contrast, PDD Holdings (PDD), the parent company of Temu, surged 3.34% after reporting better-than-expected profit despite a revenue miss. Booking Holdings (BKNG) climbed 1.77%, while Walmart (WMT) rose 1.33% and Costco (COST) gained 1.03%.
Nasdaq Opens at 26,001.01 as Trading Volume Surges; 52-Week Range Remains Key Support Level
The Nasdaq Composite opened at 26,065.32 and traded in a narrow range between 26,000.94 and 26,065.32 during the first 40 minutes of the session. The index’s previous close stood at 26,180.46, reflecting a gap down of approximately 179 points at the opening bell. Trading volume in the early session reached 1,003,110,000, significantly below the three-month average volume of 9,434,964,032, indicating cautious participation from institutional investors ahead of key events later in the week.
The Nasdaq’s 52-week range remains between 20,690.25 and 27,190.21, with the current level of 26,001.01 representing a decline of approximately 4.4% from its 52-week high. The index is still trading comfortably above its 52-week low, suggesting that while short-term selling pressure is evident, long-term support levels remain intact. Market participants are closely watching whether the index can hold above the 26,000 psychological support level, as a break below could trigger further technical selling.
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The heatmap data for the Nasdaq 100 showed that only 16 of the 100 components were trading in positive territory at the open, underscoring the breadth of the selloff. The Consumer Defensive sector emerged as the only bright spot, with stocks such as PepsiCo (PEP) rising 1.30% and Walmart (WMT) advancing 1.33%, as investors rotated into defensive names amid heightened uncertainty.
Dow Jones Industrial Average Rises 78.97 Points to 53,355.98; Financial and Consumer Stocks Lead Gains
The Dow Jones Industrial Average defied the broader market weakness, gaining 78.97 points or 0.15% to 53,355.98 in early trading. The blue-chip index opened at 53,261.95 and traded in a range between 53,261.95 and 53,416.13, demonstrating relative strength compared to the tech-heavy Nasdaq. Trading volume on the Dow reached 32,044,096, significantly below the three-month average of 525,139,516, reflecting subdued trading activity.
Financial stocks were among the top performers on the Dow, with Visa (V) surging 1.98%, American Express (AXP) climbing 1.66%, JPMorgan Chase (JPM) adding 1.09%, and Travelers Companies (TRV) rising 1.07%. UnitedHealth Group (UNH) gained 1.88%, while Walmart (WMT) advanced 1.33% and Procter & Gamble (PG) rose 0.75%. Disney (DIS) also rallied 1.68%, contributing to the Dow’s positive performance.
However, not all Dow components participated in the rally. Caterpillar (CAT) fell 2.15%, International Business Machines (IBM) dropped 1.45%, Boeing (BA) declined 1.49%, and Merck (MRK) lost 1.55%, offsetting some of the gains from the financial and consumer sectors. The Dow’s 52-week range stands between 44,948.16 and 54,744.33, with the index currently trading approximately 2.5% below its 52-week high.
The Dow Jones Industrial Average heatmap, derived from SPDR Dow Jones Industrial Average ETF holdings, showed that the Financial Services sector was the strongest performer, followed by Consumer Cyclical and Healthcare stocks. The Industrials sector was the primary laggard, weighed down by Caterpillar and Boeing.
S&P 500 Drops 0.29% to 7,652.42 as Semiconductor Rout Offsets Yield Decline
The broader S&P 500 index fell 21.95 points or 0.29% to 7,652.42, reflecting the negative sentiment from the technology sector. The index opened at 7,663.38 and traded in a range between 7,648.35 and 7,663.46, with the day’s low approaching the 7,600 support level. Trading volume on the S&P 500 reached 171,659,616, significantly below the three-month average of 5,442,831,451.
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The S&P 500 heatmap showed widespread weakness across technology and energy sectors, while financial and consumer defensive stocks provided some support. Nvidia (NVDA) fell 0.99% ahead of its earnings report, while Micron Technology (MU) plunged 6.07%, Advanced Micro Devices (AMD) dropped 3.33%, and Intel (INTC) tumbled 3.81%. Sandisk (SNDK), the S&P 500’s biggest gainer for the year so far, plunged 9.87% in early trading, leading the index’s decliners.
Despite the weakness in tech stocks, bond yields moved lower, providing some relief to equity valuations. The yield on the 10-year Treasury note fell 4 basis points to 4.70%, while the yield on the 30-year Treasury bond shed 4 basis points to 5.23%. The decline in yields followed reports that the Treasury may use its near $1 trillion General Account to fund its recently announced bond buyback operations, providing the government with considerable firepower to influence long-term yields.
The S&P 500’s 52-week range stands between 6,316.91 and 7,816.70, with the current level representing a decline of approximately 2.1% from its 52-week high. Market participants are closely watching whether the index can hold above the 7,600 level, as a break below could signal further downside in the coming sessions.
Iran Sanctions and US-Canada Trade Tensions Weigh on Sentiment; Bessent to Announce Economic D-Day
Geopolitical tensions dominated markets on Monday as investors awaited Treasury Secretary Scott Bessent’s expected announcement of new sanctions against Iran. Bessent has called the campaign an “economic D-Day”, describing it as a major effort to isolate Iran financially.
US-Iran negotiations remain deadlocked, while Washington has warned countries against maintaining economic ties with Tehran. Iran’s disruption of shipping through the Strait of Hormuz has added to uncertainty.
US-Canada trade tensions also escalated after weekend negotiations collapsed. The Trump administration imposed 50% tariffs on several Canadian goods, while Prime Minister Mark Carney announced retaliatory tariffs from September 8. The dispute could disrupt supply chains and add to inflation pressures.
Gold Hits Three-Month High of $4,730; Oil Slides Ahead of Iran Sanctions
Gold climbed to its highest level since mid-May as investors sought safety amid geopolitical uncertainty and concerns over US debt and inflation. Gold futures rose 1.06% to $4,730.20 per ounce, supported by renewed demand for bullion as a hedge against currency and fiscal risks.
The dollar index edged 0.1% higher to 98.92, limiting some of gold’s gains. Billionaire investor Ray Dalio has also recommended allocating as much as 15% to bullion to hedge against a potential US debt crisis.
Meanwhile, oil prices fell as investors awaited details of the Iran sanctions campaign and booked profits after last week’s gains. WTI declined 1.62% to $85.65, while Brent fell 1.38% to $93.09 per barrel.
Nvidia Earnings on Wednesday to Test AI Trade; Volatility Expected
Nvidia is set to report second-quarter earnings after Wednesday’s close, with investors expecting revenue to approach $92 billion, nearly double the year-earlier level.
Despite strong results, Nvidia shares have fallen after earnings in six of the past eight quarters, including the last four. High expectations leave limited room for disappointment.
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Adding to the focus, Bloomberg reported that Nvidia plans to raise prices for servers using Vera Rubin and Blackwell chips by more than 15% on systems shipped in early 2027. Investors will watch whether higher prices boost revenue without hurting demand.
Treasury Yields Fall as Buyback Plans Ease Bond Market Pressure
US Treasury yields declined after reports that the Treasury could use its nearly $1 trillion General Account to support its plans to increase government bond purchases.
The 10-year Treasury yield fell 4 basis points to 4.70%, while the 30-year yield dropped 4 basis points to 5.23%. The 30-year yield had topped 5.3% last week, reaching levels not seen in nearly two decades.
The Treasury recently doubled planned purchases of longer-term securities to at least $4 billion, with Bessent indicating the operations could be larger.
Investors will also focus on Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium on Friday for clues on monetary policy, inflation and bond-market conditions.
Alibaba Raises $10.2 Billion for AI; PDD Holdings Gains on Profit Beat
Alibaba fell 2% in premarket trading after raising HK$80 billion ($10.2 billion) through a share sale to fund its AI expansion. The company will issue 710 million shares at HK$112.70 each, an 8.4% discount to Friday’s close.
The move follows a 75% drop in June-quarter profit, while capital expenditure surged 75% to 67.7 billion yuan as Alibaba increases AI spending.
Meanwhile, PDD Holdings rose 3.34% after reporting adjusted earnings of 19.33 yuan per ADS, ahead of the 18.44-yuan consensus. Revenue rose 8% YoY to 112.4 billion yuan, but missed expectations of 115.3 billion yuan.
Shein Seeks $1.77 Billion in Hong Kong IPO; SoftBank Falls 3.8%
Fast-fashion retailer Shein is seeking up to HK$13.86 billion ($1.77 billion) through its Hong Kong IPO. The company plans to sell 280 million shares at HK$47.60–HK$49.50 each, valuing it at nearly $27 billion at the top of the range. Trading is expected to begin on September 1.
Shein’s valuation has fallen sharply from its $98.2 billion private-market valuation in 2022 amid increased competition and regulatory scrutiny.
SoftBank Group fell 3.8% after announcing plans to issue 1 trillion yen ($6.29 billion) in seven-year unsecured bonds, with an indicative interest rate of 4.30%–4.90%.
Meanwhile, Samsung SDI jumped 8.2% after announcing plans to sell part of its Samsung Display stake for 4.45 trillion won ($3.2 billion) to fund future investments.
US-Canada Trade Talks Collapse; Canadian Dollar Weakens
The collapse of US-Canada trade talks weakened the Canadian dollar, with the loonie falling 0.44% to 0.723 per US dollar.
Washington imposed 50% tariffs on several Canadian goods, while Canada plans retaliatory tariffs from September 8. The escalating dispute risks disrupting trade between the closely integrated economies and putting pressure on businesses and supply chains.
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US steelmakers benefited from the developments, with Nucor rising 4.58% and Steel Dynamics gaining 5.05% as tariffs on Canadian steel are expected to support domestic producers.
Bitcoin Stalls Near $79,000 After Strong Rally; Crypto Stocks Pull Back
Bitcoin traded around $79,000, near a three-month high, after gaining 22% last week. The cryptocurrency paused as investors booked profits and awaited fresh catalysts.
Crypto-linked stocks also pulled back. Robinhood Markets fell 1% after gaining more than 18% during the recent rally, while Coinbase declined 1% following a gain of more than 27%.
The recent Bitcoin rally has been supported by concerns over currency debasement, US fiscal policy and geopolitical tensions, with investors increasingly viewing the cryptocurrency as an alternative store of value.
FTSE Russell Rebalancing to Trigger Billions in Flows Across APAC and EM Markets: Goldman Sachs
FTSE Russell’s recent rebalancing is expected to trigger over $15 billion and $10 billion in gross two-way flows across Asia-Pacific and emerging markets, respectively, with net passive inflows of $4.1 billion and $3.8 billion, according to Goldman Sachs.
The investment bank expects China, Korea, Taiwan, and India to see the largest net inflows in Asia Pacific, while Japan may face the greatest selling pressure. Within Asia-Pacific, tech hardware, chips, and capital goods are estimated to see the most passive inflows, while banks and autos could experience the largest outflows, according to Goldman.
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The comments come after FTSE Russell announced the indicative semi-annual review results for its Global Equity Index Series after market close on August 21. The index and benchmark solutions provider confirmed the reclassification of Vietnam’s stock market to a secondary emerging market status from a frontier market. The official transition would take effect on September 21.
The opening session reflects a market caught between geopolitical headwinds, rising bond yields, and the high-stakes Nvidia earnings report scheduled for Wednesday. Investors are closely monitoring Treasury Secretary Bessent’s Iran sanctions announcement, the breakdown of US-Canada trade talks, and the Federal Reserve’s Jackson Hole Symposium for policy direction. The weakness in semiconductor stocks and the resilience of financial and consumer defensive sectors highlight the current risk-off sentiment. Market participants are advised to focus on the upcoming inflation data and corporate earnings for clearer signals on market direction.
Source
- spglobal.com/spdji/en/indices/equity/sp-500/
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