S&P 500 Posts Back-to-Back Losses as Tech Selloff and Rising Yields Weigh on Markets

CNBC reported Monday that the S&P 500 and Nasdaq Composite each closed lower for a second consecutive session, dragged down by weakness in technology and memory chip stocks.

The S&P 500 edged down 0.07% on the day. The Nasdaq fell a sharper 0.51%. The Dow Jones Industrial Average bucked the trend, adding roughly 160 points, or 0.32%. After the close, S&P 500 and Nasdaq 100 futures each ticked modestly higher.

Chip Stocks at the Center of the Selloff

Memory chip names bore the brunt of Monday’s pressure. Seagate plunged nearly 7% after CEO Dave Mosley spoke at a JPMorgan conference. Mosley suggested new factory construction would simply take too long to satisfy a surge in AI-related storage demand. Peer Micron Technology fell close to 6% in sympathy. A broader basket of AI-adjacent equities also declined on the day.

Also Read: What Nvidia’s Latest Earnings Say About AI Infrastructure Demand

A Rally Running Out of Steam

Monday’s stumble follows a strong run for equities. Both the S&P 500 and Nasdaq registered fresh record highs last week, while the Dow briefly reclaimed the 50,000 mark. Kevin Gordon, head of macro research and strategy at the Schwab Center for Financial Research, told CNBC’s Closing Bell Overtime that the sharpest gains may be behind the market. He said stretched positioning likely means future rallies will lack the velocity seen during March’s recovery.

Separately, President Donald Trump announced via Truth Social that he had called off a planned strike on Iran after leaders of three regional Middle Eastern powers asked him to stand down.

Rising Yields Add Pressure on Consumers

Bond markets compounded the cautious mood. The 10-year Treasury yield touched 4.631% on Monday, its highest reading since February 2025. Mortgage rates moved in lockstep. The average 30-year fixed rate climbed to 6.68%, its steepest level since late July 2025.

Tech Layoffs Raise Broader Growth Concerns

Bank of America strategist Savita Subramanian flagged a troubling trend in a client note Monday. She said roughly 40% of April’s layoffs fell in the technology sector. Subramanian warned the skilled professional services workforce that had powered consumption growth since the 1980s is now “gumming up.” She added that the unemployment rate among college graduates has reached recessionary levels. The note arrives as companies across industries accelerate AI integration, in some cases using the technology to justify staff reductions.

On the earnings front, Home Depot and Eagle Materials are due to report before Tuesday’s opening bell.

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