Tech sell-off and trade tensions drag global markets lower

Global equity markets came under pressure on Monday and into Tuesday as investors confronted a confluence of geopolitical and trade risks, including Washington's escalation of economic pressure on Iran, the collapse of U.S.-Canada trade negotiations, and uncertainty ahead of Nvidia's ↗ 2.78% quarterly earnings report.

Wall Street Diverges as Tech Sells Off

On Monday, the S&P 500 fell 0.28% and the Nasdaq Composite declined 0.76%, dragged lower by weakness in technology and semiconductor stocks. The Dow Jones Industrial Average bucked the trend, rising 0.26% to 53,417.16, buoyed by strength in financial stocks.globalbankingandfinance

The technology sector lost 1.6% on the session as investors trimmed positions ahead of Nvidia's Wednesday earnings report. Micron Technology ↗ 5.12% fell 5.83% and Broadcom ↗ 0.74% dropped 2.63%. U.S. Treasury Secretary Scott Bessent announced an expansion of secondary sanctions that Washington can impose on entities maintaining business ties with Iran, describing the campaign as an "economic D-Day". However, the Treasury Department stopped short of immediately imposing new penalties, allowing markets to partially stabilize by Tuesday.tradingkey+3

President Trump separately threatened to raise tariffs on Canadian cars, trucks, and auto parts to 50% starting January 1, 2027, after trade negotiations broke down. Canadian Prime Minister Mark Carney responded with retaliatory tariffs on U.S. steel, electronics, and other goods set to take effect September 8.blockonomi+1

Asian Markets Broadly Lower

Asian markets opened sharply lower on Tuesday. South Korea's Kospi led regional declines, falling as much as 4.3% at the open before paring losses. Japan's Nikkei 225 dropped more than 1%, while Australia's ASX 200 was the lone regional gainer, rising roughly 0.3%.ndtvprofit+1

In India, the Sensex fell around 200 points and the Nifty 50 slipped below 24,150 as Brent crude hovered near $92 a barrel. "The US sanctions on Iran and the threat of secondary sanctions on countries that trade with Iran have introduced a new wave of uncertainty," said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.moneycontrol

All Eyes on Nvidia and Jackson Hole

Markets now turn to Nvidia's quarterly results on Wednesday, with analysts expecting revenue to nearly double to around $92 billion. Federal Reserve Chairman Kevin Warsh is also scheduled to deliver his first keynote address at the Jackson Hole symposium on Friday, where traders will seek guidance on the recent jump in bond yields and the path of monetary policy.mettisglobal+1

The 10-year U.S. Treasury yield fell more than three basis points to 4.7% on Monday after reports that the Treasury Department could tap its General Account to finance increased debt buybacks. Bitcoin ↗ 0.09% crossed $80,000 for the first time since mid-May amid concerns over dollar debasement, while gold remained near its highest level since May at around $4,624 an ounce.profit.pakistantoday+1