Overview
- Tech and chip stocks slipped on Monday as investors priced in uncertainty ahead of Nvidia’s quarterly report scheduled for Wednesday, which traders view as a key test of whether AI-driven infrastructure spending can sustain lofty valuations.
- Treasury Secretary Scott Bessent prepared to unveil an expanded sanctions campaign targeting Iran and its trade partners, a move that has already pressured oil and foreign-exchange markets and could feed through to inflation expectations.
- Long-term Treasury yields rose sharply in recent weeks, prompting the U.S. Treasury to announce larger buybacks of long-dated bonds that briefly eased yields but left questions about how effectively the move can tame borrowing costs.
- A Bloomberg report that some customers were told server prices using Nvidia chips could jump more than 15% has heightened concerns that higher memory and equipment costs could squeeze margins for cloud providers and slow data-center buildouts.
- Investors are watching midweek PCE inflation data and Friday’s Jackson Hole speech by Fed Chair Kevin Warsh for guidance on monetary policy, while a slate of software and retail earnings will help reveal whether consumer and enterprise demand support current equity levels.