S&P 500, Nasdaq End Lower On Chipmaker Weakness, While Traders Position For Nvidia Earnings This Week — AVGO, INTC, BE, NVDA, PSKY In Focus

• The S&P 500 ended Monday 0.3% lower, while the Nasdaq 100 dropped 1% and the Dow Jones Industrial Average climbed 0.3%.
• The iShares Semiconductor ETF dropped 3%. 
• SpaceX’s first AI satellites, powered by Nvidia chips, are to be launched in 2027.

The S&P 500 and Nasdaq dropped on Monday, pulled lower by weakness in chipmaker stocks as investors prepare for earnings from Nvidia and Marvell Technologies later this week. 

The S&P 500 ended Monday 0.3% lower, while the Nasdaq 100 dropped 1% and the Dow Jones Industrial Average climbed 0.3%. The Russell 2000, which tracks stocks with small market capitalizations, fell 0.8%.

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) fell 0.3%, and Invesco QQQ Trust (QQQ) ended Monday 1% lower, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was up 0.3%.

Meanwhile, the VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) dropped 2.5%, with Micron Tech (MU) and Nvidia (NVDA) leading declines. The broader Vanguard Information Technology ETF (VGT) fell 1.5%.

Retail sentiment on Stocktwits for QQQ, SPY, and DIA was ‘bearish’ with ‘high’ message volumes. 

US Market Drivers

Treasury yields declined after a CNBC report said the Treasury could use the General Account to finance a bond buyback. The 10-year Treasury note yield dropped by over 3 basis points to 4.704%. Meanwhile, the 30-year Treasury bond yield fell more than 4 basis points to 5.234%, pulling back after surpassing 5.3% last week—a level last observed nearly two decades ago.

However, Citadel Securities labeled Scott Bessent’s expanded bond buyback initiative as “financial repression.” In a note to clients accessed by Bloomberg, Nohshad Shah, head of EMEA fixed-income sales at Citadel Securities, described the policy as failing to solve the underlying drivers of surging yields.

Furthermore, to isolate Iran and bring an end to the war, the Treasury chief announced an “economic D-Day” campaign, threatening economic sanctions against any country conducting business with the nation and offering no additional hints regarding adjustments to U.S. debt management strategy. 

Investor attention was solely focused on the semiconductor sector ahead of quarterly earnings from Nvidia (NVDA) and Marvell Technologies (MRVL). 

Key Trending Stocks

Broadcom Inc. (AVGO): The stock is facing growing scrutiny in the credit markets as investors gauge the risks of the semiconductor giant backing massive debt deals to power its artificial intelligence expansion.

Intel (INTC), Bloom Energy (BE): Former House Speaker Nancy Pelosi has filed new financial disclosures detailing multi-million-dollar stock and option acquisitions in semiconductor manufacturer Intel Corp. (INTC) and clean energy provider Bloom Energy Corp.(BE).

Nvidia (NVDA): Nvidia said that its Groq 3 LPX inference accelerator is now in full production for the Vera Rubin platform. 

Paramount Skydance (PSKY): California Attorney General Rob Bonta reportedly canceled a meeting scheduled for Monday with Paramount (PSKY) representatives to explore a settlement in the state's lawsuit seeking to block Paramount's proposed acquisition of Warner Bros. Discovery (WBD).

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