S&P 500 Declined on Monday as market participants anticipated Nvidia’s earnings report later in the week. The tech-heavy Nasdaq concluded the trading session with a decline of 0.22%, settling at 21,449.29. The broad market S&P 500 experienced a decline of 0.43%, concluding at 6,439.32. Meanwhile, the 30-stock Dow Jones Industrial Average finished down by 349.27 points, reflecting a decrease of 0.77%, at 45,282.47.
The Nasdaq experienced an initial uplift due to a rise in Nvidia shares, which concluded the day approximately 1% higher, before the index’s momentum waned. The artificial intelligence chip darling garnered several favorable endorsements from analysts in anticipation of its earnings report scheduled for after the bell on Wednesday.
Intel shares also initially extended their gains from the previous session following the announcement by Commerce Secretary Howard Lutnick on Friday that the U.S. government has acquired a 10% stake in the chipmaker. This may indicate further developments from the Trump administration, as White House economic advisor Kevin Hassett noted on Monday that the stake is integral to a larger strategy aimed at establishing a sovereign wealth fund.
“I’m sure that at some point there’ll be more transactions, if not in this industry then other industries,” stated the director of the National Economic Council during an appearance on CNBC’s “Squawk Box.” President Donald Trump reiterated that sentiment, stating on Monday morning that he will engage in deals like the Intel stake “all day long.” Intel’s shares experienced a decline of approximately 1% in the most recent trading session.
The recent developments follow a significant rally in the stock market on Friday, which propelled the Dow to unprecedented levels. The surge was prompted by a speech from Federal Reserve Chair Jerome Powell, in which he indicated that the central bank might commence easing monetary policy in the upcoming month. Anticipations for a quarter-point reduction in rates this September stand at approximately 84%, as indicated by the CME Group’s FedWatch tool. However, CFRA Research’s Sam Stovall expresses no surprise at the current pause in stock activity.
“A significant portion of the gains observed on Friday can be attributed to short covering, as there was considerable concern that the Federal Reserve would indicate, ‘We’re not cutting for the remainder of the year,’” stated the firm’s chief investment strategist. “We have a considerable amount of developments between now and September 17 that, although we experienced a boost from the enthusiasm on Friday, we still face numerous challenges before we can be assured that the Fed will be cutting rates,” he also stated, noting that the market is likely to experience “restrained gains” in the interim.