Wall Street began the week cautiously, as a selloff in semiconductor companies overshadowed a decline in oil prices. Traders were analyzing Treasury Secretary Scott Bessent’s strategy to isolate Iran from the global economy. This market reaction occurred just days before Nvidia Corp.'s earnings report.
Semiconductor giants, including Nvidia, experienced significant declines. Nvidia's shares fell for the seventh consecutive session, marking its longest slump since 2022. The sector was rattled by a report indicating that some of Nvidia's largest customers were informed of AI-related price hikes exceeding 15%. An ETF tracking memory shares dropped 5.9%, and the Nasdaq 100 lost 1%.
