US Equities Slide as NASDAQ, S&P 500 Break Key Levels on Tech Selloff

US equity indices came under significant pressure as the NASDAQ and S&P 500 declined, with the S&P 500 breaking below a key trendline support level during Monday's session. The selloff was driven primarily by profit-taking in the AI and semiconductor sectors, which were among the market's weakest performers as investors reduced risk exposure ahead of a critical week of corporate earnings reports. The technology-heavy NASDAQ bore the brunt of the selling pressure, reflecting broader risk-off sentiment across financial markets. This equity weakness has implications for USD-correlated pairs, as declining risk appetite typically supports safe-haven currencies such as the Japanese yen and Swiss franc, potentially pressuring USD/JPY lower while supporting CHF flows. Traders should monitor upcoming earnings results from major tech companies, which could either stabilize sentiment or accelerate the risk-off move. The S&P 500's trendline break is a notable technical development that may trigger further systematic selling if follow-through occurs in upcoming sessions. Near-term forex positioning should account for elevated volatility tied to earnings-driven equity moves.