NEW YORK, August 24, 2026, 11:55 EDT – The Nasdaq dropped 0.6% as broad market participation lagged, with a 1.51-to-1 ratio underscoring concerns about heavy dependence on AI-linked shares.
- At 09:45 EDT, the Nasdaq Composite was down 0.63%, as the Dow rose 0.21%.
- Declining stocks on the Nasdaq outpaced advancing issues by a 1.51-to-1 margin, highlighting widespread downward pressure on the index.
- Sandisk dropped 10.62%, while Micron and Marvell both fell over 6%.
- Nvidia’s earnings on Wednesday and upcoming inflation figures provide the next key test for valuations.
The Nasdaq Composite (INDEXNASDAQ:.IXIC) lost 0.63% on Monday, with chip shares declining beyond just Nvidia. Meanwhile, the Dow advanced. The divergence indicates an AI sector revaluation rather than a broad pullback.
The breadth of the decline reinforced concerns over market weakness. At 09:45 EDT, the number of Nasdaq stocks falling surpassed those rising by a ratio of 1.51-to-1. During the same period, the exchange registered 36 new lows and 31 new highs.
| Index | Move at 09:45 EDT | Investor read |
|---|---|---|
| Nasdaq Composite | -0.63% | Tech sector weighed on index |
| S&P 500 | -0.27% | Growth headwinds persisted |
| Dow Jones Industrial Average | +0.21% | Support came from rotation |
Nvidia Corporation NASDAQ:NVDA slipped 2.44% ahead of its Wednesday report. The decline was notable as the company shapes AI-related investment outlooks in chips, servers, and cloud infrastructure.
Losses were more pronounced among memory and connectivity stocks. Sandisk Corporation NASDAQ:SNDK slid 10.62%. Shares of Micron Technology, Inc. NASDAQ:MU and Marvell Technology, Inc. NASDAQ:MRVL both declined over 6%.
| AI-linked share | Intraday move | Pressure point |
|---|---|---|
| Sandisk NASDAQ:SNDK | -10.62% | Storage and memory downgraded |
| Micron NASDAQ:MU | More than -6% | Concerns over memory-cycle |
| Marvell NASDAQ:MRVL | More than -6% | Custom-chip valuation questions |
| Nvidia NASDAQ:NVDA | -2.44% | Investors cut risk ahead of earnings |
The scale indicates investors are reducing positions ahead of the earnings announcement. Cboe strategist JJ Kinahan noted technology was at the forefront of initial declines, with Alibaba and Samsung also weighing on sentiment from Asia.
Wall Street sentiment toward Nvidia stays positive, lifting expectations. On Monday, three firms reaffirmed upbeat ratings and set price targets well above Nvidia’s $214.72 close on Friday.
| Analyst | Recommendation | Price target | Date |
|---|---|---|---|
| C.J. Muse, Cantor Fitzgerald | Overweight | $350 | Aug. 24 |
| John Vinh, KeyBanc | Overweight | $330 | Aug. 24 |
| Kevin Cassidy, Rosenblatt | Buy | $325 | Aug. 24 |
“Chips have become a frothy space,” said Marta Norton, Empower’s chief investment strategist. Norton noted that even solid fundamentals do not guarantee a stock is appealing at any valuation. Reuters
Macro pressures persist. The 30-year Treasury yield remained above 5%, with the 10-year yield dipping to 4.70%. Elevated long-term rates lower the current value of future technology sector profits.
| Catalyst | Timing | Transmission channel |
|---|---|---|
| Nvidia Q2 earnings | Wednesday, Aug. 26 | AI market demand, profit margins |
| U.S. PCE inflation | Wednesday, Aug. 26 | Interest rate outlook, asset valuation |
| Jackson Hole address | Friday, Aug. 28 | Long-term yields direction |
The investor signal is notably clear. Should Nvidia surpass the high expectations, the breadth weakness seen on Monday could swiftly unwind. An earnings report that only meets forecasts might put pricey chip sector peers at risk.
Apple Inc. NASDAQ:AAPL and Amazon.com, Inc. NASDAQ:AMZN both advanced by under 1%. Their strength helped curb losses for the Nasdaq, yet failed to improve breadth among semiconductor stocks.
Risks: Intraday movements may change direction prior to the market close. Shifts in Iran sanctions, Treasury policy, or unexpected earnings results could rapidly disrupt the ongoing rotation.
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