S&P 500 Posts Back-to-Back Losses as Tech Selloff Drags on Sentiment

CNBC reported Monday that both the S&P 500 and Nasdaq Composite closed lower for a second consecutive session as a tech selloff erased recent gains. S&P 500 futures ticked up just 0.1% after the close, suggesting little conviction among overnight traders.

Tech Stocks Bear the Brunt of Monday’s Decline

The broad S&P 500 index dipped 0.07% on the session. The Nasdaq Composite fell a steeper 0.51%. The Dow Jones Industrial Average stood apart from the weakness, adding roughly 160 points or 0.32% on the day.

Memory chip makers absorbed the sharpest blows. Seagate shares tumbled nearly 7% after CEO Dave Mosley made remarks at a JPMorgan conference suggesting new factory construction could not keep pace with surging artificial intelligence demand. Mosley indicated the timeline for building fresh capacity was simply too long. Peer chipmaker Micron Technology fell close to 6% in sympathy. A broader cluster of AI-adjacent equities also retreated during the session.

A Rally Running Out of Room

The back-to-back declines follow a period of remarkable strength. Both the S&P 500 and Nasdaq struck fresh record highs last week. The Dow briefly reclaimed the 50,000 threshold before pulling back.

Kevin Gordon, head of macro research and strategy at the Schwab Center for Financial Research, cautioned on CNBC that positioning has grown stretched. He suggested the sharpest legs of the rally are likely behind the market. The March lows had produced aggressive recoveries. That pace is now harder to sustain, Gordon argued.

Bond Yields and Mortgage Rates Add Pressure

Rising Treasury yields added a further headwind on Monday. The 10-year Treasury yield touched 4.631%, its highest reading since February 2025. Mortgage rates followed suit. The average 30-year fixed rate climbed to 6.68%, the highest level since late July last year, according to CNBC data.

Higher borrowing costs tend to weigh on rate-sensitive sectors and dampen housing market activity. April pending home sales figures are due Tuesday and will offer a read on how buyers are responding to elevated rates.

Earnings and Geopolitics in Focus

Overnight futures found modest footing. Home Depot, Eagle Materials, and Amer Sports are all scheduled to report earnings before Tuesday’s opening bell. On the geopolitical front, President Donald Trump posted on Truth Social Monday that he had called off a planned military strike on Iran after three regional leaders urged restraint. The announcement offered some relief to markets watching the Middle East closely.

In after-hours action, hospitality software firm Agilysys surged 16% on a strong quarterly earnings beat and upbeat full-year guidance. Akamai Technologies slipped 3% after announcing a $2.6 billion convertible note offering.

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