Nvidia Takes Hit as US Stocks Bounce Ahead of Crucial Week
US stocks experienced a mixed finish on Monday as investors wait for potentially market-moving events later in the week. The S&P 500 slipped 0.3% and pulled further from its all-time high set earlier this month.
Tech stocks, particularly Nvidia, were among the biggest losers following big swings through the summer due to concerns about artificial intelligence prices being too high and unsustainable demand for AI chips. Nvidia sank 2.9% after reporting a drop in revenue last quarter, while Micron Technology and Broadcom also saw significant losses.
The US Treasury Department's surprise move to increase planned buybacks of Treasurys may have eased bond market concerns, but analysts warn it could only have a limited effect on high inflation rates. The yield of the 10-year Treasury fell to 4.70% from 4.74% late Friday.
The Federal Reserve's new chairman, Kevin Warsh, is set to deliver a speech at an economic symposium in Jackson Hole, Wyoming, which could shed light on potential interest rate hikes and their impact on inflation.