U.S. stocks finished mixed Monday as a steep chip-sector selloff dragged the Nasdaq lower while the Dow eked out a gain on strength in defensive and healthcare-adjacent names. The session's central tension was clear: investors rotated out of AI-linked hardware ahead of Nvidia's Wednesday earnings report, even as broader market breadth stayed constructive and Treasury yields eased slightly on reports the government could tap its general account to fund its bond-buyback program. Fresh geopolitical and trade headlines added pressure, with Treasury Secretary Scott Bessent unveiling expanded Iran sanctions and President Trump announcing a jump in Canadian auto tariffs to 50% starting January 1, 2027.
The Dow Jones Industrial Average rose 0.26% The S&P 500 Index fell 0.28% The Nasdaq Composite declined 0.76%
Stock & Sector Performance
Semiconductors were the session's clear laggard for a second straight trading day. Micron Technology fell 5.8%, SanDisk tumbled 10% on reports of potential policy changes that would allow Apple to source memory chips from China, disappointing guidance from Samsung, and the broader tech selloff, and Seagate Technology lost 8% amid heavy profit-taking following its multi-month rally. Advanced Micro Devices and Broadcom each declined more than 3% and 2%, respectively, Taiwan Semiconductor Manufacturing lost 3.7%, and the iShares Semiconductor ETF (SOXX) slid 2.7%. On the upside, defensive sectors led: consumer staples rose more than 1.3%, communication services and financials each gained over 1%, and utilities were close behind. Within the Dow, Visa added 2.06%, UnitedHealth rose 1.97%, and Walt Disney gained 1.71%, while Caterpillar fell 2.13%, Boeing dropped 1.55%, and Merck lost 1.53%. Elsewhere, Monster Beverage rose 2.3% on record second-quarter earnings and continued momentum from its recent 2-for-1 stock split, and Booking Holdings gained 2.24% on institutional buying following its strong quarterly results.
Magnificent Seven trading was dominated by continued Nvidia weakness. Nvidia fell more than 2%, marking its seventh consecutive decline — the first such streak since September 2022 — with the stock down roughly 7% during this slide as investors positioned defensively ahead of Wednesday's after-the-bell earnings report. Tesla fell as much as 2.4% intraday after President Trump confirmed that tariffs on Canadian autos, auto parts, and steel would rise to 50% effective January 1, 2027, a move that also pressured Ford, General Motors, and Stellantis. Reliable closing figures for Apple, Microsoft, Amazon, Alphabet, and Meta were not available in today's reporting at publication time.
Major Company Story of the Day
The session's dominant single-company storyline centered on Tesla and the broader U.S. auto sector. President Trump announced via Truth Social that tariffs on all cars, trucks, automotive parts, and steel from Canada would rise to 50% starting January 1, 2027, following the breakdown of U.S.-Canada trade negotiations last week and Canadian Prime Minister Mark Carney's decision to suspend talks and pursue like-for-like retaliation. The announcement triggered a broad selloff across North American automakers, with Tesla, Ford, and General Motors all trading lower as investors repriced supply-chain and cost risks tied to the companies' North American manufacturing footprints.
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