U.S. equities ended Monday with a mixed performance as technology stocks dragged the S&P 500 and Nasdaq lower, while financial shares helped the Dow finish higher. Investors are entering a critical week with several potential market catalysts, including expanding U.S. pressure on Iran, Nvidia’s earnings report, the Federal Reserve’s Jackson Hole policy signals and the latest inflation data.

Technology Stocks Lead the Market Lower

The technology sector was the principal source of pressure on Wall Street. The Nasdaq Composite fell 0.76% to 25,980.19, while the S&P 500 declined 0.28% to 7,652.86. The Dow Jones Industrial Average, which has comparatively less exposure to the largest technology companies, gained 0.26% to 53,417.16.

Semiconductor stocks were particularly weak. Nvidia declined 2.9%, Micron Technology fell 5.8% and Broadcom dropped 2.6%, pushing the Philadelphia Semiconductor Index lower. The moves are significant because the largest technology companies now represent a substantial portion of the S&P 500, leaving the broader index increasingly sensitive to changes in sentiment toward artificial intelligence and semiconductor valuations.

The market is also confronting growing political scrutiny of AI infrastructure. Texas Governor Greg Abbott has criticized data-center developers and previously ordered a pause on approvals for new projects through the state’s grid interconnection process. Concerns about electricity demand, grid reliability and community opposition could create additional regulatory obstacles for an industry whose expansion depends heavily on new data-center capacity.

Iran and Trade Policy Add to Market Uncertainty

Geopolitical developments provided another layer of uncertainty. The Trump administration announced a possible expansion of secondary sanctions against countries doing business with Iran, although the United States stopped short of immediately imposing the penalties. The development could affect energy markets, international trade flows and broader risk sentiment if tensions escalate.

Trade policy also remained a concern after President Donald Trump warned that tariffs on Canadian cars, trucks and automotive parts would increase to 50% beginning January 1. Ford fell 3.3%, General Motors declined 1.1% and J.B. Hunt Transport lost about 5.7%, illustrating how renewed trade tensions can quickly affect companies exposed to transportation and manufacturing activity.

Nvidia Earnings and Jackson Hole Move to Center Stage

Investors are now focused on Nvidia’s quarterly results, which could provide a fresh assessment of whether the AI investment cycle continues to support the technology sector’s elevated market valuations. Nvidia’s importance extends well beyond its own share price because the largest technology companies collectively account for roughly 30% of the S&P 500’s total value, according to the accompanying market data.

Monetary policy will provide another critical test. The 30-year Treasury yield remains above 5% after concerns about government debt pushed it to a 19-year high. Reports that the Treasury could use its nearly $1 trillion General Account to support bond buybacks have increased attention on government liquidity and Treasury-market conditions.

Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole on Friday could therefore influence expectations for interest rates, while Wednesday’s Personal Consumption Expenditures inflation report will offer another indication of price pressures. Markets currently expect one 25-basis-point rate hike by the end of 2026, according to LSEG data.

Looking ahead, the interaction between Nvidia’s earnings, inflation, Treasury yields and Federal Reserve policy will be crucial for determining whether technology stocks can regain momentum. Investors will also monitor developments surrounding Iran sanctions, Canadian tariffs and political resistance to AI infrastructure. A combination of stronger-than-expected AI earnings and contained inflation could stabilize risk sentiment, while weaker corporate results, persistent inflation or renewed geopolitical and trade tensions could keep pressure on the market’s most highly valued technology shares.