U.S. equity markets struggled on Monday, Aug. 24, 2026, as a sharp retreat in semiconductor and technology shares dragged the S&P 500 and Nasdaq lower while the Dow Jones Industrial Average remained nearly flat. The mixed-to-negative open reflected investor caution ahead of Nvidia earnings, a key inflation report, new U.S. sanctions on Iran and a highly anticipated Federal Reserve speech later in the week.
At the opening bell, the Dow Jones Industrial Average slipped 15.1 points, or 0.03%, to 53,261.95. The S&P 500 dropped 0.14% to 7,663.38, and the Nasdaq Composite lost 0.44% to 26,065.32. By about 9:40 a.m. ET, the S&P 500 had extended its decline to 7,651.28, down 0.30%, signaling that selling pressure strengthened shortly after the open.
Chip stocks bore the brunt of the early weakness. Micron fell 5.47%, AMD dropped 2.81%, Intel lost 3.64%, Broadcom declined 1.19% and Nvidia slipped 0.62%. Tesla also fell 2.07%, while SanDisk was among the sharpest decliners with a loss of 8.61%. One market estimate suggested the S&P 500's early decline erased roughly $250 billion in U.S. stock market value, although that figure was described as a social-media estimate rather than an exchange-reported total.
The pressure in technology comes ahead of Nvidia's quarterly results on Wednesday, with analysts expecting revenue to nearly double to around $92 billion. The high expectations leave Nvidia vulnerable after the AI-driven rally, making its report a critical event for broader market sentiment.
Investors are also focused on inflation. Wednesday's July Personal Consumption Expenditures report is expected to show annual core inflation at 3.3%, still well above the Federal Reserve's 2% target. Markets currently price about a 40% probability of a Fed rate increase in September, with a hike fully priced by December. Long-term Treasury yields remain elevated, with the 30-year yield around 5.25%, close to a 19-year high, adding pressure on technology valuations.
Geopolitics added to the risk-off tone. Treasury Secretary Scott Bessent was scheduled to outline new U.S. sanctions against Iran at a 2 p.m. ET press conference. Oil prices eased as traders took profits ahead of the announcement, with Brent and WTI both falling more than $1 earlier in the session. The Dow Jones Commodity Index has also broken out above former resistance, reinforcing concerns that higher energy and raw-material costs could keep inflation elevated.
Among individual companies, PDD Holdings reported second-quarter revenue of 112.36 billion yuan, below the 116.35 billion yuan estimate, while net income fell 12% to 27.2 billion yuan. The Temu parent still rose about 2.3% in early New York trading. With Nvidia earnings, PCE inflation and Fed Chair Kevin Warsh's Jackson Hole speech due this week, traders remain sensitive to further weakness in chip stocks, bond yields and geopolitical risk.
