On Monday, U.S. stocks experienced a slight decline, slightly eroding the significant gains made in the previous session as investors re-evaluated the extent of potential interest rate cuts by the Federal Reserve in their upcoming cycle. The three major indices fell by approximately 0.2%, with the S&P 500 and the Dow Jones Industrial Average trading within 0.4% of their all-time highs. On Friday, Federal Reserve Chairman Jerome Powell indicated that signs of a softening labor market might justify an adjustment to interest rates at the Fed's September meeting, potentially paving the way for a rate cut if employment and inflation data remain stable. However, concerns about high inflation, expressed by other members of the Federal Open Market Committee, tempered the enthusiasm in the equity markets.
Elsewhere, Nvidia saw a 0.5% decline ahead of its earnings announcement scheduled for Wednesday, while anxiety over elevated technology valuations continued to loom over the tech sector. Conversely, Intel's shares climbed by 1.5% following the U.S. government's acquisition of a 10% stake in the company for $8.9 billion. In contrast, Keurig Dr Pepper fell by 8% after its acquisition of the Dutch company JDE Peet's for $18 billion.
