Stocks fall as chip rout overshadows oil drop – US Market Wrap

Wall Street began the week on a cautious note, with a chipmaker selloff outweighing an oil drop as traders analyzed Treasury Secretary Scott Bessent’s plan to isolate Iran from the global economy.
Semiconductor giants plunged just days before Nvidia reported earnings. The company’s shares fell for the seventh consecutive session, the longest slump since 2022. While the results may serve as a reminder of the firm’s dominating lead, the sector was shaken by a news story that some of the firm’s major clients had been alerted of AI-related price hikes of more than 15%. An ETF tracking memory shares fell 5.9%. The Nasdaq 100 fell 1%.
Oil settled near $85 after the Treasury Secretary threatened economic sanctions on any country doing business with Iran as part of an economic D-Day drive to isolate the country and end the war.
Elon Musk believes SpaceX’s first AI satellites, powered by Nvidia’s technology, will launch in the fourth quarter of next year and reach significant scale by 2028.