Nvidia Dips Ahead of Report, Markets Await Inflation Data

The S&P 500 and Nasdaq closed lower on Monday, led by a dip in Nvidia stocks ahead of its quarterly report. Investors are focused on upcoming inflation data to gauge potential interest-rate cuts by the Federal Reserve. The Dow Jones, however, saw slight gains supported by Caterpillar and American Express.

The S&P 500 finishing lower on Monday was marked by a significant dip in Nvidia stocks ahead of its eagerly awaited quarterly report. Investors are on edge, awaiting crucial inflation data that will provide clues on the Federal Reserve's next steps regarding interest-rate cuts, essential for the economy's trajectory.

The tech-heavy Nasdaq also faced a decline, while the Dow Jones Industrial Average managed to eke out slight gains, thanks to a 1% rise in shares of Caterpillar and American Express. Nvidia, an AI heavyweight, saw a drop of 2.25%, with concerns that its upcoming report might fall short of stellar expectations, potentially affecting other tech giants like Microsoft, Alphabet, and Meta Platforms.

Meanwhile, other notable movements included Tesla's 3.2% loss owing to new tariffs on Chinese electric vehicles by Canada, and PDD Holdings witnessing a dramatic 29% drop after missing revenue expectations. Trade volume was lighter than usual, with 9.5 billion shares changing hands compared to the 20-session average of 11.9 billion shares.