Stocks Drift Ahead of AI Earnings and Fed Speech

The US stock market experienced a mixed finish on Monday as investors await several key events scheduled for later in the week. The S&P 500 declined by 0.3% and fell further away from its all-time high set earlier this month.

Technology stocks, particularly those related to artificial intelligence, led the decline. Nvidia, a major player in the AI boom, dropped 2.9% and was the heaviest weight on the S&P 500. Micron Technology and Broadcom also declined by 5.8% and 2.6%, respectively.

The US Treasury Department's announcement to increase planned buybacks of Treasurys last week may have had a limited effect in containing the rise in yields for 10- and 30-year Treasurys, according to analysts. The yield on the 10-year Treasury eased to 4.70% from 4.74% late Friday.

The US government's attempts to influence the bond market could ultimately lead to higher pressure on inflation, which has been a concern for years. The Federal Reserve may be forced to raise interest rates to combat inflation, which could have negative effects on stocks and other investments.