Nvidia Earnings and Inflation Data Keep Markets on Edge

The US stock market started the week on a cautious note as investors navigated renewed geopolitical tensions and ongoing concerns about inflation. The Dow Jones Industrial Average rose by 40 points, but the S&P 500 fell by 0.28% and the Nasdaq Composite dropped by 0.55%. Treasury yields eased slightly after reports that the US Treasury could use its General Account to fund bond buyback operations.

The technology sector remained under pressure ahead of Nvidia's quarterly results, which are expected later this week. The company's earnings will be closely watched for signs of whether AI-related spending remains strong enough to support the rally in semiconductor and technology stocks. Several semiconductor stocks moved lower in trading, with Micron falling over 5% and Advanced Micro Devices and Broadcom also declining.

Investors are also monitoring the impact of the US-Iran conflict on oil prices and inflation. Higher energy costs have raised concerns that inflationary pressures could persist, complicating the outlook for interest rates. The July Personal Consumption Expenditures price index will be released on Wednesday, which is the Federal Reserve's preferred measure of inflation.