S&P 500, Nasdaq dip as Nvidia earnings loom amid Iran sanctions
US stocks fell as the tech sector slid ahead of Nvidia earnings. The S&P 500 dropped 0.28% to 7,653.00, while the Nasdaq Composite fell 0.77% to 25,979.66. Semiconductors led the decline: the Philadelphia Semiconductor Index fell 2.64%. Nvidia stock dropped 2.03% before its Aug. 26 report. Micron fell 5.76% (worst among major chip names) and Broadcom dropped 1.74%.
Nvidia earnings expectations center on fiscal Q2 2027 revenue near $92B and EPS of about $2.09. A key macro overhang also hit sentiment: the Trump administration announced “Operation Economic Outcast,” a new Iran sanctions package covering five sectors and 60 entities. Technology and digital assets are included, with a compliance window rather than immediate penalties for major trading partners.
Additional risk comes from politics around AI infrastructure. Texas Gov. Greg Abbott criticized the rapid expansion of AI data centers, raising concerns that permitting and physical buildout could become a headwind.
With Nvidia earnings scheduled for Wednesday, traders may treat the report as a catalyst for semiconductor sentiment. If Nvidia guidance supports higher data center spending, it could offset Monday’s chip selloff; if not, the sharper Micron weakness suggests investors may already be pricing downside.
Bearish
This is broadly bearish for markets because it combines (1) a risk-off move in US tech/semiconductors into Nvidia earnings and (2) incremental macro/geopolitical uncertainty from Iran sanctions plus (3) potential political friction around AI data-center buildout. Similar pre-earnings selloffs often fade only if guidance is strong; otherwise, investors typically extend the drawdown across chip supply-chain names (as seen with Micron’s outsized drop). In the short term, the bearish setup can pressure broader risk sentiment, which can indirectly weigh on crypto via lower liquidity and higher volatility. In the longer term, if Nvidia provides upbeat data-center spending signals, the semiconductor-led sentiment shock could reverse, turning the effect more neutral for crypto. But given the headline mix (sanctions + political scrutiny) and the market already re-pricing downside, traders may expect choppy price action rather than a clean bullish trend.