US Stocks Fall as Dow Drops 347 Points; Chip Shares Slide Despite Nvidia Buyback

Key Takeaways

• The Dow Jones Industrial Average lost 347.11 points on September 28, 2026, while the S&P 500 and Nasdaq Composite also finished lower.
• Memory and semiconductor shares declined broadly, with Intel, Micron and Sandisk among the losers. Nvidia rose 1.68% after announcing a $150 billion increase in its share repurchase authorization.
• A rise in Treasury yields added pressure to growth stocks. Micron's September 30 earnings and upcoming US inflation and jobs data could shape the next move.

US Stocks Close Lower as Treasury Yields Rise

US stocks ended Monday, September 28, in the red as higher bond yields and renewed uncertainty around oil supplies weighed on investor appetite for equities. The Dow Jones Industrial Average fell 347.11 points, or 0.67%, to 51,481.51. The S&P 500 shed 59.72 points, or 0.77%, to 7,683.69, while the Nasdaq Composite dropped 248.34 points, or 0.92%, to 26,820.38.

The losses were especially visible among companies linked to AI infrastructure. Chipmakers, memory suppliers and data-center equipment stocks retreated, even as Nvidia advanced on company-specific news. The split showed that an announcement strong enough to lift one heavyweight did not reverse selling across the wider technology group.

US Treasury yields rose during the session. The Treasury's daily par yield curve put the 10-year yield at 5.24% on September 28, up from 5.17% on the previous trading day. Higher yields can make future corporate profits less valuable in today's terms, a consideration that often weighs more heavily on stocks priced for sustained growth. They can also increase financing costs for companies undertaking large capital projects.

Oil-market uncertainty provided another source of pressure. Disruptions affecting shipments through the Strait of Hormuz have kept attention on energy prices and the risk that expensive fuel could complicate the inflation outlook. That is relevant to rate expectations: if inflation stays elevated, investors may expect borrowing costs to remain higher for longer. The day's equity losses, however, cannot be assigned to any single catalyst.

Memory and Chip Stocks Lead the AI Hardware Decline

The selloff extended across several parts of the semiconductor supply chain. Intel declined 5.67%, Arm Holdings lost 8.70%, Qualcomm dropped 7.17% and Advanced Micro Devices fell 3.61% at Monday's close. Micron Technology slid 2.61%, while Sandisk fell 3.65%. Marvell Technology, a supplier of networking and semiconductor products, lost 3.83%.

Those moves mattered because the companies serve different links in the AI spending cycle. Accelerators and processors provide computing capacity; memory supports the rapid movement and storage of data; and networking components connect servers inside data centers. Weakness across those categories suggests that investors were reassessing near-term expectations for the broader hardware trade, rather than reacting only to one company's results.

Reports about the pace of advanced AI model development also featured in the market discussion. A change in the timing of model training would not, by itself, establish a comparable change in chip orders or data-center capital spending. Investors will need company guidance and customer spending plans to assess whether Monday's share-price moves point to a material shift in demand.

Micron's decline came two days before its scheduled fiscal fourth-quarter earnings call on September 30. The report offers a near-term check on memory demand, pricing, production capacity and margins. After a strong run in AI-related shares, even rapidly growing companies may face pressure if their outlook falls short of elevated expectations. Conversely, evidence of sustained orders could challenge the cautious tone reflected in Monday's trading.

Also read about Micron Earnings Preview

Why Nvidia Stock Rose Against the Trend

Nvidia was a notable exception among large AI hardware stocks, climbing 1.68% to $228.86. The company said its board authorized an additional $150 billion for share repurchases, increasing the total remaining authorization to $235 billion. Nvidia expects to execute the remaining program through fiscal 2028.

A repurchase authorization gives a company permission to buy back shares; it is not a commitment to spend the full amount immediately. The timing and volume of purchases can change with market conditions and corporate priorities. Buybacks can reduce the number of shares outstanding over time, but they do not remove the operating risks facing the underlying business.

Nvidia's gain alongside declines in other semiconductor names illustrates the difference between a company-specific catalyst and the wider market backdrop. Its announcement offered direct support for the stock on Monday, while peers remained exposed to concerns about yields, AI spending expectations and forthcoming results. The positive move in one large index constituent was insufficient to offset the broader weakness in major US benchmarks.

What Could Drive the Next Move in US Stocks?

The next few sessions will bring information that could test the reasons behind Monday's decline. Micron's September 30 results will offer evidence on the memory market. The US Bureau of Economic Analysis is scheduled to publish August personal income and outlays data, including its inflation measures, on September 30. The September employment report is due on October 2.

Stronger inflation or employment figures could reinforce expectations of restrictive interest rates and keep Treasury yields in focus. Softer readings could ease some rate pressure, although their effect on shares would also depend on what they imply for economic growth. Oil prices and developments affecting Middle East shipping remain additional variables for the inflation outlook.

Monday's session ended with a clear divergence: broad US indexes and many AI hardware stocks fell, while Nvidia rose on a major buyback authorization. Whether that split persists will depend on incoming economic data and, for the chip sector, evidence that customer demand and profit margins can meet the expectations already reflected in share prices.