Nvidia Earnings Report and Fed Speech to Set Market Tone This Week

US stocks ended Monday in a mixed bag as investors await several market-moving events later this week. The S&P 500 dropped 0.3%, pulling away from its all-time high set earlier this month, while the Dow Jones Industrial Average rose 140 points or 0.3%. Tech stocks led the decline with Nvidia plummeting 2.9% due to concerns over AI chip production costs.

The bond market showed signs of easing as Treasury yields dropped back below their pre-announcement levels following a surprise move by the US Treasury Department last week to increase planned buybacks of Treasurys. However, analysts warn that this may have limited impact on addressing fundamental issues with high debt and inflationary pressures.

The Federal Reserve's new chairman Kevin Warsh is set to deliver a speech at an economic symposium in Jackson Hole, Wyoming on Friday, where investors are expecting him to discuss inflation and potential interest rate hikes. A failure to address these concerns could lead to rising bond yields and further pressure on the economy.