Wall Street Stumbles as Nvidia's Troubles Ignite Tech Sector Decline

Wall Street's indexes dropped following a 2.5% decline in Nvidia shares due to an antimonopoly investigation by China's regulator, impacting tech stocks. The downturn was compounded by a 5.7% drop in AMD shares, impacting semiconductors. Investors await key inflation data for guidance on future Federal Reserve monetary policy actions.

Wall Street's indexes experienced a downturn on Monday, with a notable slump in Nvidia's stock coursing through the tech sector. The influential chipmaker's shares fell 2.5% as China's market regulator initiated an investigation into potential antimonopoly law violations, causing a 0.45% drop in the information technology sector.

Adding to market woes, Advanced Micro Devices shares declined by 5.7% following a downgrade by BofA Global Research, further shaking the Philadelphia Semiconductor Index, which slipped 0.87%. "The market is reacting to the unexpected development of China's probe into Nvidia for possible antimonopoly-law breaches," observed Sam Stovall, CFRA Research's Chief Investment Strategist.

The Dow Jones Industrial Average dipped 240.59 points or 0.54%, the S&P 500 fell 37.42 points or 0.61%, and the Nasdaq Composite dropped 123.08 points or 0.62%. With financial stocks leading the way, nine out of 11 S&P 500 sectors lost ground. Investors keenly await upcoming consumer and producer price index data amid Federal Reserve deliberations over monetary policy shifts.

(With inputs from agencies.)