Traders work during Hawkeye 360 Inc. initial public offering (IPO). on the New York Stock Exchange (NYSE) in New York, USA, on Thursday, May 7, 2026.
Michael Nagle | Bloomberg | fake images
He Nasdaq Composite and the S&P 500 fell on Monday, bogged down by declines in technology, as traders monitored oil prices and bond yields awaiting further developments with the conflict in the Middle East.
The broad market benchmark fell 0.07% to finish at 7,403.05, while the tech-heavy Nasdaq fell 0.51% to close at 26,090.73. It was the second consecutive day of falls for both indices. He Dow Jones Industrial Average closed up 159.95 points, or 0.32%, at 49,686.12.
seagate led a sell-off in the memory chip space after the CEO said during a JPMorgan conference that new factories would “take too long.” Seagate fell almost 7% and dragged its peers Micron technology drops almost 6%. The comment exacerbated concerns that the memory chip industry does not have the capacity to meet growing demand.
In addition to Seagate and Micron, shares of Western Digital lost 4.8% and sandisk fell 5.3%. Beyond that, other actions related to artificial intelligence, such as NVIDIA and Broadcom They lost 1% each.
Those moves come at a delicate time for stocks. The S&P 500 and Nasdaq hit new all-time highs last week, while the Dow briefly regained the 50,000 level.
However, the major averages took a hit on Friday, as sovereign bond yields rose around the world. USA 30-year treasure Bond yields hit their highest level in about a year. Lately there have been few changes along with the 10-year Treasury produce. In the UK, 30-year Gilt yields had climbed to levels not seen since the late 1990s, along with long-term Japanese bond yields.
Technology stocks, which had been driving the market to all-time highs, were hit by rising yields. The Nasdaq-100 index fell 1.5% on Friday, marking its worst one-day performance since March 27.
Tensions remain high between Iran and the United States, keeping oil prices elevated while the path forward for the conflict remains unclear. West Texas Intermediate Futures gained approximately 3% to close at $108.66 per barrel, while Brent Crude It closed up more than 2% at $112.10 a barrel.
The rally in oil prices lost steam after President Donald Trump said in a Truth Social post on Monday that he is delaying an attack on Iran that was planned for Tuesday. The decision was made at the request of Qatar, Saudi Arabia and the United Arab Emirates, whose leaders said “serious negotiations are now underway” that could lead to a deal that is “very acceptable” to the US.
On Sunday, Trump said Iran had to “get going” or “there will be nothing left.”
On top of that, new inflation data released last week makes it very difficult for the Federal Reserve to cut rates anytime soon.
“There are real inflation problems,” Ben Fulton, CEO of WEBs Investments, told CNBC, calling high oil prices a “make-or-break” issue. “It’s going to be difficult to see that trade-off.”
This means stocks could be in a “heavy range” going forward without positive developments in the Middle East, especially with regards to the Strait of Hormuz, he said.
“I can see people starting to protect their profits pretty quickly,” Fulton added.
