U.S. stocks extended a streak of volatile trading on Monday as Wall Street steered into third-quarter earnings season and braced for a batch of inflation reports.
The technology-heavy Nasdaq Composite (^IXIC) sank 1.1% to hit a two-year low as a set of fresh restrictions by the Biden administration on China’s access to American technology sent chip stocks tanking and weighed on the broader tech sector. The S&P 500 (^GSPC) slid 0.7% and the Dow Jones Industrial Average (^DJI) fell around 100 points, or 0.3%.
The measures imposed on Monday to curb China’s access to semiconductors aim to slow the country’s technological and military advances but deal a further blow to an industry already struggling with weaker revenues as demand slows for computers, smartphones, and other electronic devices. Shares of major chipmakers including Nvidia (NVDA) and AMD (AMD) fell roughly 4% and 2%, respectively.
The CBOE Volatility Index (^VIX), which measures short-term expectations for market turbulence,…