Wall Street's Rollercoaster: Stocks Decline Amid Earnings Await

U.S. stocks sharply dropped, with the S&P 500 and Nasdaq falling below key indicators as investors eyed retailer and Nvidia earnings. The Dow, S&P, and Nasdaq all closed below their 50-day averages for the first time since April. AI-driven stock exuberance faced valuation concerns as Nvidia influenced market movements.

U.S. stocks took a nosedive on Monday, with S&P 500 and Nasdaq indices closing beneath significant technical benchmarks for the first time since late April. Investors are closely watching upcoming earnings reports from major entities like Nvidia and key U.S. retailers, as well as a long-awaited jobs report due later in the week.

Intense selling pressures saw the Dow, S&P 500, and Nasdaq end significantly lower, all breaching their 50-day moving averages. This trend indicator is viewed as a marker for intermediate-term direction. Retail giants including Walmart, Home Depot, and Target are expected to finalize the quarterly earnings scene this week. Additionally, Nvidia's earnings, central to Wall Street's AI trades, will be closely scrutinized.

Nvidia's stock fell by 1.9%, weighing heavily on indices, amid concerns that enthusiasm for AI investments had inflated valuations excessively. The Dow plunged by 557.24 points, while the Nasdaq and S&P 500 followed suit. Volume on U.S. exchanges reached 19.06 billion shares, slightly below the 20-day trading average.

(With inputs from agencies.)