NEW YORK — The Nasdaq Composite declined 277.14 points, or 1.05 percent, to 26,004.46 on Monday amid renewed weakness in technology and semiconductor shares, as investors locked in gains from recent rallies and weighed ongoing uncertainties from the Middle East.

The drop extended early session losses, with the S&P 500 slipping modestly while the Dow Jones Industrial Average posted small gains, illustrating continued rotation away from high-growth names. Technology-heavy indexes bore the brunt of selling pressure following last week's strength tied to artificial intelligence enthusiasm and major listings.

Chip stocks were among the hardest hit. SK Hynix's American depositary receipts fell sharply after a strong Nasdaq debut on Friday, contributing to broader sector declines. Micron Technology, SanDisk and other memory and storage names also traded lower. The Philadelphia Semiconductor Index fell several percent as the group digested profit-taking after an extended run.

Analysts described the moves as a healthy correction rather than a reversal of the AI investment theme. Mohamed El-Erian, chief economic adviser at Allianz, said in a CNBC interview that markets are viewing recent U.S.-Iran tensions as likely contained. "The market is assuming that this clash will remain localized," he noted, pointing to indications that neither side seeks full escalation.

Oil prices rose on supply disruption fears linked to the Strait of Hormuz but pared gains later. West Texas Intermediate crude........

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