Tech Reversal Erases U.S. Stock Rally as S&P 500 and Nasdaq Slide

An early rally in U.S. equities unwound on Monday as persistent selling in artificial intelligence and technology shares offset broad gains across other sectors. The S&P 500 fell 0.5% after giving up an intraday surge that had reached 1.1%, while the Nasdaq Composite slid 1.1%, according to market reporting from The Associated Press published by Yahoo Finance (https://finance.yahoo.com/markets/world-indices/articles/major-us-stock-indexes-fared-212103580.html?.tsrc=rss).

The split session underscored the heavy concentration of mega-cap technology names within cap-weighted benchmarks. Even though a majority of equities advanced across Wall Street—boosted by a 7.6% drop in the price of Brent crude oil—losses in bellwether tech equities counteracted those gains.

Nvidia served as the primary pivot for the decline, reversing from an early gain into negative territory and pulling the broader market lower. The ongoing volatility in AI hardware suppliers extended a broader tech sell-off that began late the previous week.

By the closing bell, the S&P 500 dropped 38.67 points to 7,541.40. The Nasdaq Composite shed 272.68 points to finish at 25,164.32, and the small-cap Russell 2000 dipped 5.97 points, or 0.2%, to 2,805.88. Defying the tech drag, the Dow Jones Industrial Average rose 213.67 points, or 0.4%, to end at 51,983.98 as traditional industrial and energy-consuming businesses benefited from easing commodity costs.

Despite the day's retreat, major benchmarks remain solidly positive for the year. Year to date, the Russell 2000 leads the group with a 13.1% gain (up 323.97 points), the S&P 500 has climbed 10.2% (up 695.90 points), the Nasdaq Composite is up 8.3% (up 1,922.33 points), and the Dow Jones Industrial Average has advanced 8.2% (up 3,920.69 points).