US stocks slipped on Monday, pointing to a retreat from a powerful rally fueled by rate-cut hopes, with eyes all on Nvidia (NVDA) earnings for the week ahead.
The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) both fell around 0.2%. The tech-heavy Nasdaq Composite (^IXIC) dropped 0.3%.
Wall Street is coming off a rally that saw the Dow Jones Industrial Average surge over 800 points, or 1.8%, to 45,631.74, to score its first record of 2025. The S&P 500 gained 1.5%, finishing just shy of a fresh all-time high. The Nasdaq jumped 1.9% as investors cheered signals from Federal Reserve Chair Jerome Powell that rate cuts could start as early as September.
With earnings season continuing, Nvidia, the most valuable stock in the S&P 500, reports results after the closing bell on Wednesday. Analysts see the chipmaker posting earnings of $1.01 per share on $46.13 billion in revenue. Price targets have been climbing in the lead-up, reflecting optimism that demand for AI hardware remains high.
Nvidia stock has already had a monster run: Shares are sitting near a record high, up 32% year to date while nearly doubling since April’s market low. Wednesday’s report acts as a litmus test for Nvidia as well as the broader market, as investors eyed a potential rotation out of tech before the end-of-week rally. Meanwhile, Dell (DELL) and Marvell Technology (MRVL) report on Thursday.
Looking ahead, the spotlight turns to Friday’s July PCE inflation report, the Fed’s preferred inflation gauge. Economists expect core PCE to rise 2.9% year over year, slightly higher than June’s 2.8%.
