What caused global equity markets to decline on Monday and Tuesday, and how did the technology sell off, investor caution ahead of Nvidia’s expected roughly $92 billion quarterly revenue report, Washington’s expanded threat of secondary sanctions against entities doing business w

Global equities weakened primarily because investors reduced risk in expensive technology and semiconductor shares ahead of Nvidia’s closely watched results, while new Iran-sanctions risks, U.S.–Canada trade friction, high bond yields earlier in the period, and uncertainty about the Federal Reserve added to caution. The premise needs one correction: Tuesday’s trading was mixed rather than a uniform second day of global declines, and oil fell sharply on Monday despite having been elevated in the preceding week. 125

What drove the sell-off

• Technology was the central drag: investors were positioning defensively before Nvidia’s Wednesday report, viewed as a key test of AI spending and chip-demand expectations. Nvidia was down about 2.9% in Monday trading, and heavyweight technology pulled the broader market lower. 12
• Washington’s proposed expansion of secondary sanctions designed to isolate Iran increased geopolitical and trade uncertainty, even though markets later treated the announced measures as less severe than initially feared. 13
• The collapse of U.S.–Canada talks and reciprocal tariff threats added another policy-risk channel, particularly for cross-border industrial, auto, metals, and supply-chain-sensitive companies. 3
• Oil had risen to one-month highs before the sell-off amid the Gulf diplomatic impasse, a potential inflation concern; however, crude fell more than $2 a barrel on Monday as traders reassessed Iran-related supply risks. Thus, elevated oil was part of the background inflation anxiety, not the immediate Monday price driver. 25
• Treasury yields had been a major concern beforehand, but U.S. yields eased on Monday, offering some support that was insufficient to overcome the technology decline. 23

Key market moves

• United States, Monday: the S&P 500 fell 0.28%, the Nasdaq lost 0.76%, and the Dow rose 0.26%, illustrating that the decline was concentrated in growth and technology rather than broad-based. 1
• Technology and semiconductors: heavyweight technology led the weakness, with Nvidia down roughly 2.9%; the Nasdaq’s larger loss relative to the Dow reflects that concentration. 12
• Asia, Monday: South Korea’s Kospi fell about 3.1% to 6,696.96, Japan’s Nikkei lost 0.74% to 65,528.09, and India’s Sensex declined 0.22% to 77,369.11. 8
• Tuesday: Asian trading was mixed rather than uniformly lower; an early snapshot showed the Nikkei up 0.4% to 65,811.19 while the Kospi was down 0.4% to 6,675.88. 8
• Australia and India: the supplied evidence does not provide a verified Monday or Tuesday percentage move for the ASX 200 or the Nifty 50. The available Reuters market feed provides an ASX All Ordinaries level of 9,316.70 but no day-on-day change. 8
• Rates and alternative assets: the 10-year Treasury yield was around 4.66% after easing from recent highs; bitcoin was near $79,000 and gold around $4,680–$4,700 in the cited market snapshots. 67
• Oil: crude traded around $82 a barrel after a roughly 3% Monday fall, despite the prior week’s oil-price strength. 67

Catalysts that could set the next move

• Nvidia earnings on Wednesday: the market will focus not just on quarterly revenue—expected at roughly $92 billion—but on forward guidance, hyperscaler AI-demand commentary, margins, and evidence that AI infrastructure spending remains durable. A miss or restrained outlook could extend the chip-led de-risking; strong guidance could reverse it. 12
• U.S. PCE inflation report: this is the key inflation gauge for the Fed. A higher-than-expected reading would reinforce concerns that policy will remain tight or could be tightened again; a benign print would lower pressure on yields. 1
• Second-quarter GDP data: a strong growth revision combined with firm inflation could support the case for tighter policy, while weaker growth could revive expectations of eventual easing.
• Kevin Warsh’s first Jackson Hole keynote as Fed chair: markets will parse his discussion of inflation, growth, balance-sheet policy, and the threshold for further tightening. The speech is especially important because rate expectations remain unsettled. 26
• September policy risk: the direction of markets will hinge on whether incoming inflation and growth data make a September rate hike appear more probable. Higher yields and a more hawkish policy signal would be most challenging for long-duration technology valuations; falling yields and a less hawkish Fed outlook would support them. 23