Dow Rises While Nasdaq and S&P Decline Ahead of Nvidia Earnings

The Dow Jones Industrial Average increased by 134 points, or 0.3%, as the Nasdaq Composite fell 0.5% and the S&P 500 declined 0.2% amid ongoing selling pressure in chip stocks ahead of Nvidia’s earnings report.

The iShares Semiconductor ETF dropped again, despite having entered a new bull market earlier this month. This sell-off reflects caution in the market as several major tech firms prepare to release earnings.

Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley, said, "Details about US economic sanctions on Iran, the Treasury’s attempts to lower long-term yields, and economic data may shape much of the sentiment backdrop, but Nvidia and other tech earnings are positioned to be a major weight on the market’s momentum scale."

Investor focus remains on both Nvidia’s earnings, expected Wednesday, and Federal Reserve Chairman Kevin Warsh’s speech scheduled for Friday at the Jackson Hole summit, which bond traders will closely monitor.

The yield on the 10-year Treasury note declined to 4.72%, while the 30-year yield dropped to 5.24%, indicating some easing in long-term borrowing costs.