S&P 500 Falls 0.28% as Tech Slides; Dow Gains 0.26% on Financials

For finance readers, the Aug. 24 session is a textbook rotation signal: the Nasdaq lost 0.76% while the Dow gained 140 points, as money moved out of high-multiple chipmakers and into JPMorgan and Visa. The underperformance of the S&P 500 Information Technology index and the Philadelphia semiconductor index suggests the market is repricing AI infrastructure risk just days before Nvidia reports. With Fed Chair Warsh's speech and a fresh inflation print ahead, this divergence could shape sector allocation for the rest of the quarter.

On Monday, Aug. 24, 2026, U.S. equities delivered a split verdict as technology shares came under renewed pressure. The S&P 500 declined 21.51 points, or 0.28%, to finish at 7,652.86, while the Nasdaq Composite shed 200.26 points, or 0.76%, to 25,980.19. The Dow Jones Industrial Average bucked the downbeat tone, adding 140.15 points, or 0.26%, to 53,417.16. The divergence underscored a rotation into financials even as chipmakers and AI-exposed names sold off. Nvidia dropped 2.9%, Micron Technology fell 5.8%, and Broadcom slid 2.6%, helping push the S&P 500 Information Technology index lower and dragging the Philadelphia SE Semiconductor index into negative territory.

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Nvidia dropped 2.9%, Micron Technology fell 5.8%, and Broadcom slid 2.6%, helping push the S&P 500 Information Technology index lower and dragging the Philadelphia SE Semiconductor index into negative territory.

The immediate catalyst was the Trump administration's announcement of a possible expansion of sanctions on countries doing business with Iran. The administration labelled the initiative 'economic D-Day,' but stopped short of actually imposing penalties, leaving investors to weigh escalation risk rather than a concrete supply shock. At the same time, the market was bracing for a pivotal week that includes Nvidia's quarterly earnings and a closely watched inflation report. Those events, combined with ongoing concerns over U.S. government debt, placed the bond market in focus. Investors were looking ahead to Federal Reserve Chair Warsh's speech and any signal of Treasury support measures for bond markets, particularly after upward pressure on the 30-year Treasury yield.

Beyond macro headlines, a more structural worry emerged for technology valuations: growing political opposition to AI data centres. Texas Governor Greg Abbott delivered one of the starkest warnings yet from a Republican to the AI industry, telling Axios that data centre companies 'dug their own grave' and deserve the backlash they are facing after failing to win community support. Abbott had already ordered a pause on approvals of new data centre projects through the state's grid interconnection process, citing concerns that a surge in electricity demand could threaten grid reliability. The remarks were published on Aug. 23 and amplified a debate about whether the AI infrastructure buildout can continue at the same pace in the face of local friction and grid constraints. Wells Fargo chief equity strategist Ohsung Kwon called the political rhetoric a 'bigger worry' for markets and highlighted it as 'a big risk heading into the midterms.'