The Nasdaq also dropped, but the Dow Jones Industrial Average closed marginally up
The S&P 500 finished lower on Monday, with AI heavyweight Nvidia dropping ahead of its quarterly report this week, while investors awaited inflation data for clues about the path of interest-rate cuts by the Fed.
The tech-heavy Nasdaq also dropped, but the Dow Jones Industrial Average was supported by gains of around 1% each in Caterpillar and American Express and closed marginally up.
Nvidia declined 2.25% ahead of its report on Wednesday in what is set to be the U.S. stock market’s most closely watched event of the week.
Some investors worried that anything short of a stellar forecast from Nvidia could shatter Wall Street’s rally in AI-related firms, including Microsoft, Alphabet and Meta Platforms.
Nvidia could disappoint. I think when you get to the point where the majority does not even suspect that there could be a piece of bad news, that is typically where you get it, warned Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Oklahoma.
U.S.-listed shares of PDD Holdings skidded nearly 29% after the Temu-owner missed market expectations for second-quarter revenue.
Tesla skidded 3.2% after Canada, following the lead of the U.S. and EU, said it would impose a 100% tariff on imports of Chinese electric vehicles.
The S&P 500 stumbled 0.32% to close the session at 5,616.84 points.
The Nasdaq skidded 0.85% to 17,725.77 points, while Dow Jones Industrial Average gained 0.16% to 41,240.52 points.
Of the 11 S&P 500 sector indexes, six tumbled, led lower by information technology, down 1.12%, followed by a 0.81% loss in consumer discretionary.
The energy sector index climbed 1.11% following reports of oil supply disruptions as the conflict in the Middle East lifted crude prices.
