Nvidia Earnings and Fed Speech in Focus as Stocks Drift Ahead of Key Week

US stocks drifted on Monday as investors await key events that could sway markets this week. The S&P 500 slipped 0.4% and moved further away from its all-time high set earlier in the month, while the Dow Jones Industrial Average rose 77 points or 0.1%. Tech stocks led the decline, with Nvidia down 2.6% due to concerns about the sustainability of artificial-intelligence-related demand.

The bond market has been another area of focus, as longer-term Treasury yields climbed this summer on worries about inflation and government debt. The US Treasury Department attempted to calm these concerns by increasing planned buybacks of Treasurys last week, but analysts said this move may have limited impact due to its small size.

On Monday, the yield of the 10-year Treasury fell to 4.70% from 4.74% on Friday, and oil prices also declined, helping to ease bond market pressures. However, analysts warn that the US government's efforts to influence the bond market could ultimately lead to higher inflation pressure.

With the Federal Reserve set to deliver a speech at an economic symposium in Jackson Hole this week, investors are waiting for clues on how the central bank may respond to rising inflation and interest rates. The Fed's new chairman, Kevin Warsh, has stated that he wants to give markets fewer cues about future rate decisions.