US Sanctions on Iran and Canada Tariffs Hit Tech Stocks

Technology stocks pulled the S&P 500 and Nasdaq lower on Monday following a series of economic measures by the Donald Trump administration. The president expanded secondary sanctions against Iran and its trade partners as the conflict with the nation approaches its six-month mark. Treasury Secretary Scott Bessent characterized the move as an "economic D-Day."

Chip manufacturers including Nvidia, Micron Technology, and Broadcom experienced significant sell-offs. In contrast, financial stocks such as JPMorgan Chase and Visa provided support for the Dow Jones Industrial Average. Market volatility was further compounded by 30-year Treasury yields remaining above 5% and concerns over government debt, leading investors to await a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.

Simultaneously, shares of Ford and General Motors declined after the president announced that tariffs on Canadian automotive imports will rise to 50% on January 1. This decision follows the collapse of trade talks with the Treasury Board of Canada.