US Stock Markets End Mixed Ahead of Nvidia Earnings and Fed Remarks

U.S. stock markets ended with mixed results on Monday as investors awaited major tech earnings and upcoming Federal Reserve remarks.

The S&P 500 and Nasdaq indices fell, heavily influenced by tech sector declines, while the Dow Jones Industrial Average posted modest gains.

The S&P 500 dropped 21.51 points, closing at 7,652.86. The Nasdaq composite fell 0.8% to 25,980.19, whereas the Dow Jones Industrial Average added 140.15 points, finishing at 53,417.16.

Tech stocks led the market downturn due to investor concerns over artificial intelligence valuation and profitability.

Nvidia dropped 2.9% ahead of its quarterly earnings report scheduled for Wednesday, maintaining its position as a heavy influence on the S&P 500.

Additional semiconductor companies also experienced notable market drops. Micron Technology fell 5.8%, and Broadcom decreased by 2.6%.

In the bond market, the 10-year Treasury yield eased to 4.70% on Monday, down from 4.74% late Friday.

This yield decline was supported by a drop in global oil prices. Brent crude fell 2.3% to settle at $90.54 per barrel.

The drop in oil prices occurred alongside new U.S. sanctions on Iran, which pushed the Iranian currency to a record low against the U.S. dollar.

The U.S. Treasury Department recently announced an expansion of its planned Treasury buybacks, attempting to contain rising long-term yields.

Bank of America economists noted this Treasury action places greater market attention on how the Federal Reserve will manage interest rates and inflation.

Market focus is now directed toward Federal Reserve Chairman Kevin Warsh, who is scheduled to deliver a policy speech at the Jackson Hole economic symposium on Friday.

International stock markets also experienced downward movement on Monday. South Korea’s Kospi index declined 3.1%, and Hong Kong’s Hang Seng dropped 1.9%.

The Kospi's sharp decline was largely driven by swings in major regional tech stocks, including Samsung Electronics and SK Hynix.