Nasdaq falls second day as Micron slides, tech sector drags

The Nasdaq Composite slipped 0.51% to close at 26,090.73, marking a second straight day of losses for the tech‑heavy index [2]. The drop was led by memory‑chip makers: Seagate fell nearly 7% after its CEO warned that new factories would “take too long,” and Micron Technology tumbled almost 6% on the same day [2]. The broader market followed, with the S&P 500 edging down 0.07% to 7,403.05, while the Dow Jones Industrial Average bucked the trend, rising 0.32% to 49,686.12.

The sell‑off spread beyond the memory segment. Western Digital shed 4.8% and SanDisk slipped 5.3%, while AI‑related names such as Nvidia and Broadcom each lost about 1% [2]. Traders pointed to a confluence of pressures: rising sovereign bond yields, especially the U.S. 30‑year Treasury hitting its highest level in a year, and heightened geopolitical tension in the Middle East that kept oil prices elevated [2]. West Texas Intermediate futures rose roughly 3% to $108.66 per barrel, and Brent settled above $112 a barrel, adding inflationary concerns to the mix.

The market’s mood was further dampened by fresh inflation data that makes a near‑term Federal Reserve rate cut unlikely, prompting analysts to predict a “heavy range trade” until the Middle East situation clarifies [2]. Ben Fulton of WEBs Investments called the oil price surge a “watershed” issue that could keep equities muted for the foreseeable future. With chip stocks already stretched by a nine‑week rally, the combination of higher yields, oil‑driven inflation fears, and supply‑chain doubts in memory manufacturing created a perfect storm for the Nasdaq’s back‑to‑back declines.

If the memory‑chip squeeze proves temporary, a rebound could be on the cards, as seen when Micron later surged 10% after a brutal Friday sell‑off [4]. However, the lingering questions are whether the yield environment and geopolitical risks will continue to suppress tech valuations, or if a clearer path in the Middle East could restore confidence in the sector. The answer will shape the Nasdaq’s trajectory in the weeks ahead.