Chip Selloff Hits Nasdaq as Nvidia Earnings, Jackson Hole Loom

US stocks were mixed on Monday, August 24, as a sharp selloff in semiconductor and AI-infrastructure shares dragged the S&P 500 and Nasdaq lower, while the Dow edged up on defensive and financial strength. Micron fell over 6% and AMD dropped about 3%, with Nvidia extending its losing streak to seven days ahead of its pivotal Q2 earnings report on August 26. Investors are also bracing for Fed Chair Kevin Warsh's Jackson Hole speech and the PCE inflation report, with Treasury yields easing on reports the Treasury may use the TGA to fund larger long-term buybacks.

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Chip stocks plunge, dragging Nasdaq and S&P 500 lower on Monday Semiconductor and AI-infrastructure names led a broad tech selloff, with Micron down over 6%, AMD off about 3%, and Intel falling nearly 5%. The Nasdaq dropped about 1% while the Dow rose modestly, supported by financials and defensive stocks. 1 2 3 4

Nvidia slides for seventh straight day ahead of pivotal Q2 earnings Nvidia fell 2.91% on Monday, capping a seven-day losing streak that has erased about $407 billion in market value, with the stock down roughly 7.5% since August 14. Wall Street expects Q2 revenue near $92 billion, but options imply a 5.4% post-earnings swing, and analysts say results may need to far exceed consensus to reverse the slide. 5 6 7

Treasury yields ease on TGA-funded buyback reports, aiding Dow The 10-year yield fell about 4 basis points to 4.70% and the 30-year slipped to around 5.23% after reports the Treasury may use the Treasury General Account to fund larger long-term buybacks. The yield relief helped the Dow gain 0.26%, led by Visa, UnitedHealth, and Disney, while Caterpillar and Boeing weighed. 2 8 9

Markets brace for Nvidia earnings, Warsh's Jackson Hole speech, PCE data Investors are positioning for a heavy week: Nvidia reports after the close on August 26, Fed Chair Kevin Warsh speaks at Jackson Hole, and the PCE inflation report is due. Political opposition to AI data centers and potential US secondary sanctions on Iran trading partners added to tech-sector pressure. 4 10 11

Premarket rebound: Sandisk clears $1,525, QQQ reclaims $711 Early Tuesday premarket trading showed a risk-on bid, with Sandisk up 2.15% to $1,525.29 and QQQ gaining 0.27% to $711.28. Memory names led the rebound, with Micron up 1.84% and Nvidia up 1.10% against Monday's close. 7