Market Jitters: Nvidia Probe Sends Tech Stocks Tumbling

Wall Street experienced a downturn as tech stocks, led by Nvidia, declined following an antimonopoly investigation by China. Investors awaited crucial inflation data amid mixed market movements. A rise in unemployment bolstered predictions for a Federal Reserve rate cut. Companies like Comcast and Hershey experienced divergent stock performances.

Wall Street faced a downturn on Monday, primarily driven by a decline in tech stocks with Nvidia at the forefront. The company's shares fell 1.9% as China's market regulator initiated an antimonopoly investigation, affecting the larger information technology sector, which dropped by 0.4%.

Adding to market woes, Advanced Micro Devices saw a notable 5.0% decline following a downgrade from BofA Global Research. This contributed to the Philadelphia Semiconductor Index's 0.5% slip. Some investors were caught off guard by the probe into Nvidia, according to Sam Stovall from CFRA Research in New York.

Market attention is now shifting toward upcoming inflation data releases, including the consumer price index and producer price index, as well as the Federal Reserve meeting. Recent labor market data has prompted increased speculation about a potential interest rate cut.

(With inputs from agencies.)