Wall Street kicked off the trading week on an uneven note Monday as rising bond yields and ongoing geopolitical uncertainty surrounding Iran kept buyers cautious. The Dow Jones Industrial Average managed a modest gain, but the tech-heavy Nasdaq slipped as higher rates pressured growth stocks. Investors appeared content to stay on the sidelines ahead of a packed earnings calendar later in the week, headlined by Nvidia’s highly anticipated report on Wednesday.
What Moved Markets
The Dow Jones Industrial Average closed at 49,686.12, adding 159.95 points, or 0.32%, as defensive and industrial names held up. The S&P 500 (SPI:SP500) finished just below flat at 7,403.05, slipping 5.45 points, or 0.07%. The Nasdaq Composite took the hardest hit, falling roughly 0.54% to close near 26,225 as the technology sector led losses.
The main culprit was the bond market. The 10-year Treasury yield climbed to its highest level in over a year, pushing past 4.60%. Higher yields raise borrowing costs and tend to reduce the appeal of growth stocks whose valuations depend on future earnings. The S&P 500’s technology sector dropped about 2.2% on the day, the worst performance among all eleven sectors.
Geopolitical developments added to the cautious mood. Comments from President Trump regarding Iran and the Strait of Hormuz rattled energy markets and introduced fresh uncertainty about global oil supply. Crude oil prices swung sharply during the session before settling lower, with WTI crude dipping below $100 per barrel as hopes for renewed U.S.-Iran negotiations somewhat eased supply fears.
Notable Movers
Nvidia (NVDA) fell about 2.9%, reflecting broader tech weakness ahead of its Wednesday earnings report. Wall Street expects roughly $78.8 billion in revenue for the quarter, with some analysts projecting even higher numbers driven by strong demand for its Blackwell GPU architecture.
3M (MMM) rose 3.74%, leading the Dow’s gainers on continued optimism around its restructuring efforts.
Salesforce (CRM) gained 3.18%, bucking the tech downturn as investors positioned ahead of its upcoming results.
Nu Holdings (NU) tumbled 5.7% after reporting first-quarter adjusted earnings of $0.19 per share, missing analyst estimates.
H World Group (HTHT) added 1.4% after beating first-quarter earnings expectations with adjusted EPS of $0.49.
Looking Ahead
The rest of the week is loaded with catalysts. Tuesday and Wednesday bring a wave of retail earnings from Home Depot, Lowe’s, Target, and TJX Companies, giving investors a read on the health of the American consumer. But the marquee event is Nvidia’s earnings after Wednesday’s close — the AI chipmaker’s results will likely set the tone for the technology sector and the broader market heading into the end of May. Investors will also be watching Treasury yields closely. If rates continue climbing, the pressure on growth stocks could intensify, making it harder for the market to sustain its recent push to record highs.