The S&P 500 slipped slightly on Monday, but losses were limited as Nvidia climbed ahead of its highly anticipated quarterly earnings later this week.
By 2:50 p.m. ET (18:50 GMT), the Dow Jones Industrial Average fell 271 points, or 0.6%. The S&P 500 declined 0.2%, while the Nasdaq Composite edged up 0.1%.
Chip stocks lead tech higher ahead of Nvidia results
NVIDIA Corporation (NASDAQ: NVDA) and Intel Corporation (NASDAQ: INTC) led gains in the tech sector. Wall Street is optimistic Nvidia will deliver strong results on Wednesday, backed by robust demand and a rebound in China-related revenue after President Donald Trump eased restrictions on H20 chip sales to Beijing.
Wedbush analysts lifted their forecasts for Nvidia, citing improving demand trends and expectations for a recovery in China sales. Intel also rose despite cautioning that its international business could face risks due to the U.S. government’s decision to take a 9.9% stake in the company, which could trigger additional regulations abroad.
Apple Inc. (NASDAQ: AAPL) gained slightly after Bloomberg reported the company is planning a three-year overhaul of both hardware and software for the iPhone.
Corporate deals drive activity
Mergers and acquisitions also made headlines. Keurig Dr Pepper Inc. (NASDAQ: KDP) announced an $18 billion deal to acquire Dutch coffee maker JDE Peet’s, with plans to split into two separate businesses focused on coffee and cold beverages. Private equity giant Thoma Bravo said it will acquire Verint Systems Inc. (NASDAQ: VRNT) for $2 billion, adding to its growing software portfolio following several recent acquisitions, including its $10.6 billion purchase of Boeing’s navigation unit Jeppesen.
Treasury yields rise as markets eye Fed rate cut
U.S. Treasury yields continued to climb as investors positioned for a possible September rate cut after Fed Chair Jerome Powell signaled at Jackson Hole that easing may be needed due to labor market risks. Powell noted that tariffs posed less of an inflationary risk since employment conditions were weakening. Analysts at Morgan Stanley said this has effectively lowered the threshold for a September cut.
Markets now await further clarity from upcoming Fed speakers and fresh U.S. inflation data due Friday, which could shape expectations for the next policy move.
