S&P 500 sheds earlier gain, falls slightly as Nvidia warning hits tech stocks
Stocks struggled to hold their ground on Monday, after the S&P 500’s third straight weekly gain, as worries about demand for the semiconductor industry weighed on tech names.
The S&P 500 and Nasdaq Composite fell less than 0.1%. The Dow Jones Industrial Average held onto a gain of 39 points, or 0.1%. The shares initially rose in morning trading, but lost ground as the day progressed.
Nvidia reported weaker-than-expected second-quarter earnings, putting pressure on semiconductor stocks. Shares of the chip giant fell more than 8%, and rival stocks like AMD and Broadcom were also under pressure.
Some clean energy stocks were acquired after the Senate passed the Cut Inflation Act. The measure includes billions of dollars earmarked to fight climate change. The House is expected to pass the measure later this week.
Monday’s moves follow a weekly rise in the S&P 500 and Nasdaq Composite as a surprisingly strong monthly jobs report eased some recession fears. The resilience of the labor market also signaled that the economy could withstand further rate hikes from the Federal Reserve.
“The question is whether the rally lacks momentum,” said Angelo Kourkafas, investment strategist at Edward Jones. “There are certainly things that have improved after last month that would, in our view, warrant an upward move, which we have certainly seen. … However, a lot of things have to go right to be able to say that the east coast clear.”
A new reading of the consumer price index, due out on Wednesday, will give investors more clarity on the central bank’s next move at its policy meeting in September.