Nvidia Sinks Amid AI Boom Fears as Stocks and Bonds Wait for Key Events

The US stock market closed in mixed fashion on Monday as investors await key events this week. The Dow Jones Industrial Average rose by 140 points or 0.3%, while the S&P 500 slipped 0.3% and pulled further from its all-time high set earlier this month.

Tech stocks led the decline, with Nvidia sinking 2.9% after becoming Wall Street's largest and most influential stock due to its AI boom success. Micron Technology dropped 5.8%, and Broadcom fell 2.6%. The Nasdaq composite sank 0.8%

The bond market also showed some calm, with the yield of the 10-year Treasury easing to 4.70% from 4.74% late Friday. However, experts warn that the US government's attempts to influence the bond market could ultimately lead to higher inflation pressure.

Investors are awaiting a speech by Federal Reserve Chairman Kevin Warsh at an economic symposium in Jackson Hole, Wyoming on Friday. Expectations are high for him to discuss inflation and potential interest rate moves.