S&P 500 Posts Back-to-Back Losses as Tech Selloff Drags Markets Lower

CNBC reported Monday that the S&P 500 and Nasdaq Composite both closed lower for a second consecutive session, dragged down by a broad tech selloff. The S&P 500 slipped 0.07% while the Nasdaq fell 0.51%. The Dow Jones Industrial Average bucked the trend, gaining roughly 160 points, or 0.32%.

Memory Chip Stocks Lead the Tech Selloff

Shares of Seagate CEO Dave Mosley sparked the day’s sharpest losses. Mosley, speaking at a JPMorgan conference, suggested that building new manufacturing facilities to meet AI-driven demand would simply take too long. Investors took that as a warning sign. Seagate shares dropped nearly 7% on the comments. Peer Micron Technology fell close to 6% in sympathy. Other AI-adjacent names also declined through the session.

A Rally That Reached Record Heights

The losses follow a sharp run higher in recent weeks. Both the S&P 500 and Nasdaq hit all-time highs last week. The Dow briefly crossed the 50,000 mark for the first time during that stretch. Overnight futures offered little drama after the close, with S&P 500 futures up just 0.1% and Nasdaq 100 futures adding 0.2%.

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Strategists Warn the Best of the Rally May Be Behind Us

Kevin Gordon, head of macro research and strategy at the Schwab Center for Financial Research, told CNBC’s Closing Bell: Overtime that positioning has grown stretched. He said the sharp rebounds seen after March’s lows are unlikely to repeat. Separately, Bank of America strategist Savita Subramanian flagged a troubling trend in the labor market. In a note to clients, she highlighted that roughly 40% of April’s layoffs hit the technology sector. She described the engine of consumption growth as “gumming up,” with college graduate unemployment reaching levels associated with recessions.

Mortgage Rates and Geopolitics Add to the Mix

Rising Treasury yields are pushing borrowing costs higher for homeowners. The 30-year fixed mortgage rate climbed to 6.68% on Monday, its highest reading since July 2025. The 10-year Treasury yield touched 4.631%, a level last seen in February 2025. On the geopolitical front, President Donald Trump announced via Truth Social that he had called off a planned strike on Iran after regional leaders urged restraint. Markets will now turn to Tuesday earnings from Home Depot, Eagle Materials, and Amer Sports, alongside April pending home sales data.

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