S&P 500 and Nasdaq Close Lower as Nvidia Dip Weighs on Markets

S&P 500 ends lower, weighed down by Nvidia dip

The S&P 500 declined on Monday, driven by Nvidia's 2.25% fall ahead of its quarterly report. The Nasdaq also fell, while gains in Caterpillar and American Express helped the Dow Jones finish slightly up. Investors awaited key inflation data, and Tesla shares dropped due to new Canadian tariffs on Chinese electric vehicles.The S&P 500 finished lower on Monday, with AI heavyweight Nvidia dipping ahead of its quarterly report this week, while investors awaited inflation data for clues about the path of interest-rate cuts by the Federal Reserve. The tech-heavy Nasdaq also declined, but the Dow Jones Industrial Average was supported by gains of about 1% each in Caterpillar and American Express and finished just slightly up. Nvidia dropped 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 companies, including Microsoft, Alphabet and Meta Platforms. "Nvidia could disappoint. I think when you get to the point where the majority doesn't even suspect that there could be a piece of bad news, that's typically where you get it," warned Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Oklahoma. U.S.-listed shares of PDD Holdings tumbled almost 29% after the Temu-owner missed market expectations for second-quarter revenue. Tesla lost 3.2% after Canada, following the lead of the U.S. and European Union, said it would impose a 100% tariff on imports of Chinese electric vehicles. The S&P 500 declined 0.32% to end the session at 5,616.84 points. The Nasdaq declined 0.85% to 17,725.77 points, while Dow Jones Industrial Average rose 0.16% to 41,240.52 points. Of the 11 S&P 500 sector indexes, six declined, led lower by information technology, down 1.12%, followed by a 0.81% loss in consumer discretionary. The energy sector index jumped 1.11% following reports of oil supply disruptions amid the geopolitical conflict in the Middle East lifted crude prices. Boeing slipped 0.85% after NASA picked SpaceX over the planemaker's Starliner to return its astronauts from space next year. Wall Street rallied on Friday, with the S&P 500 nearing record highs after Fed Chair Jerome Powell said "the time has come" to lower borrowing costs in the light of a diminishing upside risk to inflation and moderating labor demand. Money markets suggest traders see a 70% chance of a 25 basis point interest rate cut and a 30% chance of a 50 basis point cut in September, according to the CME Group's FedWatch tool. Friday's highly anticipated Personal Consumption Expenditure data for July, the central bank's preferred inflation gauge, could provide more insight into the policy easing trajectory. Results from Dell, Salesforce, Dollar General and Gap are on tap this week. Advancing issues outnumbered falling ones within the S&P 500 by a 1.1-to-one ratio. Across the U.S. stock market, declining stocks outnumbered rising ones by a 1.2-to-one ratio. Volume on U.S. exchanges was relatively light, with 9.5 billion shares traded, compared to an average of 11.9 billion shares over the previous 20 sessions.

US Stocks: S&P 500 ends lower, weighed down by Nvidia dip

Oil shares up on supply disruption fears, Middle East tensions The S&P 500 finished lower on Monday, with AI heavyweight Nvidia dipping ahead of its quarterly report this week, while investors awaited inflation data for clues about the path of interest-rate cuts by the Federal Reserve. The tech-heavy Nasdaq also declined, but the Dow Jones Industrial Average was supported by gains of about 1% each in Caterpillar and American Express and finished just slightly up. Nvidia dropped 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 companies, including Microsoft, Alphabet and Meta Platforms. "Nvidia could disappoint. I think when you get to the point where the majority doesn't even suspect that there could be a piece of bad news, that's typically where you get it," warned Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Oklahoma. U.S.-listed shares of PDD Holdings tumbled almost 29% after the Temu-owner missed market expectations for second-quarter revenue. Tesla lost 3.2% after Canada, following the lead of the U.S. and European Union, said it would impose a 100% tariff on imports of Chinese electric vehicles. The S&P 500 declined 0.32% to end the session at 5,616.84 points. The Nasdaq declined 0.85% to 17,725.77 points, while Dow Jones Industrial Average rose 0.16% to 41,240.52 points. Of the 11 S&P 500 sector indexes, six declined, led lower by information technology, down 1.12%, followed by a 0.81% loss in consumer discretionary. The energy sector index jumped 1.11% following reports of oil supply disruptions amid the geopolitical conflict in the Middle East lifted crude prices. Boeing slipped 0.85% after NASA picked SpaceX over the planemaker's Starliner to return its astronauts from space next year. Wall Street rallied on Friday, with the S&P 500 nearing record highs after Fed Chair Jerome Powell said "the time has come" to lower borrowing costs in the light of a diminishing upside risk to inflation and moderating labor demand. Money markets suggest traders see a 70% chance of a 25 basis point interest rate cut and a 30% chance of a 50 basis point cut in September, according to the CME Group's FedWatch tool. Friday's highly anticipated Personal Consumption Expenditure data for July, the central bank's preferred inflation gauge, could provide more insight into the policy easing trajectory. Results from Dell, Salesforce, Dollar General and Gap are on tap this week. Advancing issues outnumbered falling ones within the S&P 500 by a 1.1-to-one ratio. Across the U.S. stock market, declining stocks outnumbered rising ones by a 1.2-to-one ratio. Volume on U.S. exchanges was relatively light, with 9.5 billion shares traded, compared to an average of 11.9 billion shares over the previous 20 sessions. (Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Pooja Desai and David Gregorio)

S&P 500, Nasdaq end lower, weighed by Nvidia dip

STORY: The S&P 500 and Nasdaq closed lower on Monday, as AI heavyweight Nvidia dipped ahead of its quarterly report later in the week. The Dow meanwhile ticked up modestly to close at a record high. The S&P shed about three-tenths of a percent, and the Nasdaq lost more than eight-tenths of a percent. Shares of Nvidia dropped two-and-a-quarter percent ahead of its earnings report Wednesday, the stock market's most closely watched event of the week. But Skylar Weinand, chief investment officer at Regan Capital, thinks Nvidia's dip - and the broader pullback in equities - is normal given this year's rally. "Stock market has had a tremendous run year-to-date, upper teens, which is on pace for an annualized almost 30%-return for the S&P and the Nasdaq. So, yeah, it's expected to see a little bit of a pullback here. You know, the long-term normal is 8 to 11%. So, we could see a pullback here, especially going into September, but, you know, we think Nvidia is going to have a good report here on Wednesday. And we think long term, the stock market is on pace to continue to return low doubles." But some investors worried that anything short of another stellar forecast from Nvidia could shatter Wall Street's rally in AI-related companies, including Microsoft and Meta Platforms, shares of which closed lower on Monday. Fellow Magnificent 7 member Tesla lost more than 3% after Canada said it would impose a 100% tariff on imports of Chinese electric vehicles, following the lead of the U.S. and European Union. Among other movers, shares of Caterpillar and American Express rose to help lift the Dow. Monday marked the first full trading day since Federal Reserve Chair Jerome Powell said on Friday that "the time has come" to start cutting interest rates. To that end, investors will look to this Friday's Personal Consumption Expenditure data for July, the central bank's preferred inflation gauge.