Tech Stocks Tug at Wall Street's Path Amid Nvidia and Alphabet Moves

Wall Street's indices showed little direction as investors awaited Nvidia's earnings and Alphabet surged after Berkshire Hathaway's stake disclosure. AI-related stocks faced scrutiny over potential valuation bubbles, while retail giants prepared to report earnings. The Federal Reserve's future rate decision held market focus, along with upcoming government data releases.

Wall Street's main indices struggled to establish a clear direction on Monday, navigating a busy week with Nvidia's anticipated earnings and the resumption of critical government data releases. Meanwhile, Alphabet shares jumped as Berkshire Hathaway disclosed a significant new stake in the Google parent company.

Alphabet's stock surged 5.6% following this new investment from Berkshire Hathaway, which also trimmed its stake in Apple, causing Apple shares to drop 0.9%. This week, investors are keenly focused on Nvidia's earnings set to be released post-market on Wednesday, as they evaluate the ongoing rally in AI-related stocks amid concerns of overvaluation and the potential for a market bubble.

The markets saw modest gains, with the Dow rising slightly, and the S&P 500 and Nasdaq also nudging higher. However, a cautious tone was underscored by movements in other key indices and stocks, as well as anticipation around the quarterly earnings of retail giants and impending Federal Reserve communications that keep traders guessing on future monetary policies.

(With inputs from agencies.)