Nvidia edges lower as US-Iran talks stall, Asian markets retreat

Nvidia Corp. edged down in early trading Monday as investors weighed the implications of stalled U.S.-Iran peace talks, with the standoff threatening to keep oil prices elevated and bond yields under pressure.

"The breakdown in initial talks introduces a fresh layer of uncertainty for risk assets, particularly for tech names with exposure to global supply chains," said VK Vijayakumar, chief investment strategist at Geojit Investments. "Markets are now pricing in the likelihood of higher-for-longer U.S. interest rates as energy costs remain sticky."

Most Asian stock markets traded lower on Monday as renewed doubts over the Middle East peace process drove oil prices and bond yields higher. Shipping activity through the Strait of Hormuz slowed after initial talks between U.S. and Iranian officials under an interim peace agreement began on a difficult note, traders said. The higher energy costs compound existing pressure on semiconductor and tech stocks, which are already sensitive to rate expectations.

The move in Nvidia comes as the broader semiconductor sector faces a dual headwind: elevated geopolitical risk in the Middle East threatening energy supply chains, and the resulting upward pressure on bond yields that compresses valuations for growth-dependent tech names. Investors are now watching for any escalation in the region that could further disrupt shipping lanes and push energy costs higher, potentially delaying the Federal Reserve's path toward rate cuts.

This article is for informational purposes only and does not constitute investment advice.