Nasdaq Drops as Market Bets Against AI Ahead of Nvidia Earnings

Technology shares experienced renewed downward pressure on Monday as Wall Street displayed cautious positioning ahead of critical earnings reports, most notably from artificial intelligence heavyweight Nvidia. The tech-heavy Nasdaq Composite dropped 0.8%, extending a prolonged slide in technology equities where investors actively curtailed exposure to AI-driven valuations. Meanwhile, the S&P 500 also edged lower by 0.3%, weighed down by its significant exposure to the broader technology complex. In contrast, the Dow Jones Industrial Average managed to gain approximately 140 points, or 0.3%, demonstrating resilience due to its comparatively lower allocation to AI and tech names. Broader market sentiment had to contend with escalating trade tensions between the United States and Canada, alongside policy announcements from Treasury Secretary Scott Bessent regarding plans for further economic isolation of Iran. Despite strength in certain non-tech components of the market, investor focus remains intensely concentrated on whether upcoming semiconductor earnings and central bank commentary can halt the technology sector's multi-session losing streak.