Tech sell-off weighs on S&P 500 and Nasdaq as Iran talks cool oil

Alphabet led a retreat among major tech players, dragging down Meta, Amazon, and Microsoft as market confidence in infrastructure spending wanes. SpaceX added to the Nasdaq’s woes, tumbling as the firm initiated its first-ever debt offering. Analysts remain divided on the long-term outlook for artificial intelligence; while the rally has been fueled by AI optimism, the focus is shifting toward the tangible returns on massive data center investments. Micron Technology now serves as the next litmus test for the sector, with its Wednesday earnings report looming after a 300% surge in share price this year.

Geopolitical shifts in Switzerland provided a counter-narrative to the tech sell-off, as U.S. and Iranian officials signaled progress on a roadmap toward a final agreement. The resulting dip in energy prices offers a potential lifeline for consumer spending, though the broader market remains tethered to the Federal Reserve’s tightening cycle. Under new Chair Kevin Warsh, the central bank’s hawkish stance continues to push Treasury yields upward, pressuring equity valuations. All eyes are now on Thursday’s Personal Consumption Expenditures data, which will likely determine the Fed's appetite for a 25-basis-point rate hike in September. In the biotech space, AbbVie provided a rare bright spot, announcing a $10.9 billion cash acquisition of Apogee Therapeutics.