Wall Street ended lower on Monday, August 24, 2026, as weakness in major technology and semiconductor stocks dragged down the S&P 500 and Nasdaq, while investors assessed Washington’s latest moves against Iran and awaited Nvidia’s closely watched earnings report.
Technology shares were among the session’s biggest losers. Nvidia, Micron Technology and Broadcom declined, putting pressure on the broader information-technology sector as investors continued to question lofty AI valuations and the sustainability of massive spending on data centers.
Nvidia Earnings Keep AI Stocks in Focus
Nvidia remains at the center of market attention ahead of its fiscal second-quarter results on August 26. Analysts expect quarterly revenue of around $92 billion, nearly double the year-earlier level, making the report an important test of whether extraordinary demand for AI chips and infrastructure can continue supporting technology stocks.
Political concerns surrounding AI infrastructure have also entered the market debate. Reuters reported that opposition to new data-center construction, including concerns about electricity demand, added another layer of uncertainty for AI-related companies.
Iran Sanctions Add Geopolitical Uncertainty
Investors were simultaneously evaluating the Trump administration’s expanding economic pressure on Iran.
Washington warned countries against maintaining certain business relationships with Tehran and announced measures targeting 60 Iran-linked individuals, entities and vessels. However, the US stopped short of immediately imposing some of the tougher secondary penalties markets had feared.
That initially reduced concerns about an immediate shock to global oil supplies. By Tuesday, oil remained subdued and European markets showed signs of relief after investors concluded that the sanctions package was less severe than initially feared. Iran, however, has vowed to resist the pressure, keeping geopolitical risks elevated.
Dow Outperforms as Financial Stocks Gain
While technology weakness pressured the S&P 500 and Nasdaq, financial companies including JPMorgan Chase and Visa gained, helping the Dow outperform the technology-heavy indexes. Market breadth nevertheless remained weak, with declining stocks outnumbering advancing shares on major US exchanges.
Investors now face several potential market-moving events, including Nvidia’s earnings, inflation data and Federal Reserve Chair Kevin Warsh’s Jackson Hole remarks. Together, these developments could determine whether the recent technology-sector weakness continues or the AI-led Wall Street rally regains momentum.
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