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Nvidia and Iran concerns weigh on markets

US technology stocks fell on Monday as investors positioned for Nvidia’s quarterly figures on Wednesday, while the Trump administration’s broader sanctions threat against Iran added to geopolitical uncertainty. The Dow rose modestly, but the S&P 500 and Nasdaq 100 finished lower, with European shares also ending mixed. Asian markets were trading without a clear direction on Tuesday. Bitcoin continued its sharp rally, rising more than 4% to trade above USD 80,000.

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

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US broadens Iran sanctions threat

The US government unveiled "Operation Economic Outcast" on Monday, threatening secondary sanctions against entities that support Iran’s economy, including through oil trading, finance, shipping and technology. Treasury Secretary Scott Bessent said countries would first receive deadlines to end specified activities, while entities facilitating Iranian money laundering could be excluded from the US dollar system. Bessent indicated that Chinese institutions would not be exempt if they helped convert Iranian oil revenues into funding for Tehran, despite the US and China maintaining a fragile trade truce. The initiative comes as the US conflict with Iran approaches six months and the Strait of Hormuz remains significantly less active than before the war. Despite the announcement, oil prices were little changed: Brent crude oil futures declined 0.3% to USD 90.30 per barrel, while West Texas Intermediate (WTI) futures slipped 0.2% to USD 84.83 per barrel.

US technology shares retreat

US technology shares weakened on Monday, with the Nasdaq 100 falling 1% to 29,023.18 points as investors awaited Nvidia’s quarterly results on Wednesday and weighed reports that rising AI chip costs could lead to price increases. The Dow Jones Industrial Average gained 0.3% to 53,417.16 points, while the S&P 500 slipped 0.3% to 7652.86 points. Nvidia and Tesla declined 2.9% and 3.8%, respectively, while shares of several chip companies also fell, and Tesla faced a recall of almost three million vehicles in China over safety concerns with retractable door handles.

Asian stocks fall before Nvidia results

Asian equities were mixed on Tuesday as technology shares remained under pressure ahead of Nvidia’s quarterly results on Wednesday. Japan’s Nikkei 225 gained 0.4%, Korea’s Kospi rose 0.5% and Australia’s S&P/ASX 200 advanced 0.6%. Meanwhile, Hong Kong’s Hang Seng Index fell 0.2%, mainland China’s CSI 300 slipped 0.1% and India’s Nifty 50 declined 0.3%. Investors were cautious as they assessed the wider US sanctions linked to Iran and awaited US PCE inflation data due on Wednesday.

European shares end mixed

European equity markets closed mixed on Monday as investors were still awaiting details of US sanctions against Iran, Nvidia’s quarterly results on Wednesday and the Federal Reserve’s Jackson Hole meeting later this week. The Euro Stoxx 50 declined 0.3% to 6449.15 points and Switzerland’s SMI was little changed at 14,447.19 points. Technology stocks fell as concerns about Nvidia’s results and potentially higher AI chip prices weighed on sentiment, with Infineon down 3.2%, STMicroelectronics 2% and ASML 1.1%.

Bitcoin extends rally past USD 80,000

Bitcoin rose 4.6% to around USD 80,700, extending a rally that began last week, when the cryptocurrency gained more than 20% within three days. Renewed inflows into US spot bitcoin exchange-traded funds, which attracted USD 1.92 billion last week, supported the advance, while risk appetite improved after the US Treasury said it would double purchases of longer-dated government bonds, briefly pushing yields lower. The rally was also amplified by a short squeeze that liquidated more than USD 4 billion of bearish crypto positions. Gold declined 0.2% to around USD 4640 per ounce, while US Treasury yields were trading higher, with the 2-year yield at 4.2% and the 10-year yield at 4.7%.

Corporate and economic calendar

Corporate news in focus: quarterly figures from Intuit.

Economic data in focus: German gross domestic product (08:00), Germany’s ifo Business Climate Index (10:00), US building permits (14:00), Conference Board Consumer Confidence Index (16:00), US new residential sales (16:00) and Richmond Fed Manufacturing Index (16:00).

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Editor: Alessandro Fezzi
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