Nvidia's Record Buyback Couldn't Keep the Nasdaq Out of the Red on Monday Morning

The Nasdaq dropped 1% Monday morning despite NVDA announcing a $150 billion share buyback expansion, the largest in company history. The broader semiconductor group sold off sharply, with most chip names declining while NVDA bucked the trend and posted gains.

Market weakness stemmed from geopolitical tension after former President Trump rejected Iran's peace proposal, triggering a spike in oil prices and pushing Treasury yields to their highest level since 2002. Energy was the only sector to log meaningful gains as risk-off flows dominated.

The divergence between NVDA's buyback-fueled strength and weakness across AMD, QCOM, MU, and broader chip names underscores the defensive shift in Monday's session. The $150 billion authorization marks a significant capital return program even as macro headwinds mount.

Rising yields and elevated energy costs typically pressure growth-sensitive technology stocks, particularly semiconductors with cyclical exposure. The yield move to two-decade highs adds a valuation headwind for the entire group, even as NVDA's buyback provided temporary support for its own shares.