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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. [O/R]
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)
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