S&P 500 falls slightly as chip stock slide outweighs yield decline

The S&P 500 fell slightly on Monday as a drop in key technology stocks overshadowed a move lower in Treasury yields.

The broad market index fell 0.2%, while the Nasdaq Composite lost 0.4%. The Dow Jones Industrial Average traded up 114 points, or 0.2%.

. Micron Technology shed more than 5%, while Advanced Micro Devices and Broadcom pulled back 2% and 1%, respectively. The iShares Semiconductor ETF (SOXX) slid almost 3%.

Other tech stocks fell as well. Coherent and Lumentum dropped almost 5%, while Sandisk dropped 7%. Corning moved down 3%, while Seagate Technology declined 5%.

Treasury yields moved lower after CNBC reported that the Treasury may use the General Account to fund a buyback operation. The 10-year Treasury note yield fell more than 3 basis points to 4.70%. The yield on the 30-year Treasury bond, which topped 5.3% last week to reach levels not seen in nearly 20 years, shed more than 4 basis points to 5.231%.

The report comes after Treasury Secretary Scott Bessent told CNBC last week that the Treasury Department’s plans to at least double the level of government debt buybacks in the next few months could be larger than the $4 billion that was announced earlier that week.