Tech Stocks Slide as U.S. Sanctions, Nvidia Earnings and Inflation Concerns Weigh on Markets

August 24,2026

                                                                  

Traders worked intensely on the floor of the New York Stock Exchange in New York City on Monday as the S&P 500 and Nasdaq closed lower, weighed down by weakness in major technology stocks. Investors spent much of the day reacting to fresh U.S. economic pressure on Iran and preparing for a busy week that includes Nvidia’s earnings report and a closely watched inflation update. 

The Trump administration announced plans to expand secondary sanctions on countries doing business with Iran, describing the move as an “economic D-Day,” though no penalties were actually imposed. 

 Technology shares struggled throughout the session. Chipmakers slid sharply, pulling down the broader semiconductor index. Nvidia, Micron, and Broadcom all declined, adding pressure to the S&P 500’s technology sector. Sentiment toward tech was also hurt by growing political pushback against AI data centers.

Texas Governor Greg Abbott delivered one of the strongest warnings yet, saying data center companies had “dug their own grave” by failing to build community support. Earlier this month, he ordered a pause on approvals for new data center projects over concerns that rising electricity demand could threaten grid reliability.

Financial stocks, however, managed to rise, with JPMorgan Chase and Visa helping keep the Dow in positive territory. By the end of the day, the S&P 500 had slipped 0.28%, the Nasdaq had fallen 0.77%, and the Dow had gained 0.27%. Concerns about rising government debt continued to hang over the bond market. The 30‑year Treasury yield recently hit a 19‑year high, and although the Treasury announced support measures last week, yields remained above 5%. A CNBC report suggested Treasury Secretary Scott Bessent might use the department’s nearly $1 trillion General Account to help fund bond buybacks. Investors are now turning their attention to Federal Reserve Chair Kevin Warsh’s upcoming speech at the Jackson Hole symposium, hoping for clarity on how policymakers view the Treasury’s efforts. 

Nvidia’s quarterly results are expected to be another major market catalyst. Any sign that the company’s rapid growth is slowing could revive concerns about stretched valuations across the AI sector. As one strategist put it, Nvidia needs to deliver strong results to keep one “leg” of the market steady, while Warsh’s comments on interest rates will help stabilize the other. Traders are also watching the Personal Consumption Expenditures report, the Fed’s preferred inflation gauge, due Wednesday. A mild consumer inflation reading earlier this month reduced expectations for an immediate rate hike, though markets still anticipate one 25‑basis‑point increase by the end of 2026. In a separate development, President Trump warned that tariffs on cars, trucks, and auto parts from Canada will rise to 50% starting January 1 after trade negotiations collapsed over the weekend. Shares of Ford and General Motors fell, and trucking company J.B. Hunt dropped sharply in response.