Tech Sell-off Weighs on Wall Street as Investors Eye Iran Talks

Alphabet led the decline, tumbling 6.1%, while Meta, Amazon, and Microsoft saw losses ranging between 2.3% and 4.3%. Analysts point to a widening rift in market sentiment: while memory chipmakers benefit from AI demand, the hyperscalers funding that expansion are struggling to maintain their momentum. David Wagner of Aptus Capital Advisors noted that the companies writing the checks for infrastructure have largely underperformed throughout the year.

Despite the tech-led drag, the broader market showed signs of rotation. Financials and industrials both climbed 0.7%, suggesting the recent rally may be expanding beyond the tech sector. Semiconductor stocks also reached a record high, with Micron and Sandisk gaining 4% and 5.4% respectively. Investors are now bracing for Micron’s quarterly results on Wednesday, which will serve as a bellwether for the durability of the AI-driven rally.

Beyond corporate earnings, geopolitical developments in Switzerland provided a backdrop for trading, with Washington and Tehran outlining a roadmap for a potential deal. Simultaneously, the focus remains on Thursday’s personal consumption expenditures (PCE) data. With yields on 2-year notes hitting a 16-month high of 4.236%, the market is recalibrating expectations for the Federal Reserve’s next moves. In the healthcare sector, AbbVie provided a bright spot, jumping 6.7% after announcing a $10.9 billion acquisition of Apogee Therapeutics, whose shares surged nearly 47%.