FX.co ★ US Stocks Trim Losses

On Monday, U.S. stocks showed a mixed performance as they moved beyond earlier declines, highlighting the ongoing disconnect across various sectors. Investors are currently reassessing the potential scope of Federal Reserve interest rate cuts, while also evaluating the effects of tariffs on manufacturing firms. The S&P 500 and the Nasdaq 100 stood just above break-even, whereas the Dow Jones Industrial Average fell by 200 points. Fed Chairman Jerome Powell remarked last Friday that a weakening labor market could justify an interest rate reduction during the Fed's September meeting, provided there are no unexpected changes in employment and inflation data. Nonetheless, concerns about rising inflation, expressed by other Federal Open Market Committee members, dampened a more robust stock market rally. Notably, Nvidia's shares advanced 1.5% ahead of its earnings report scheduled for Wednesday. However, lingering worries over inflated technology valuations continued to cause some apprehension in the sector. Additionally, Intel's shares increased by 1% following the U.S. government's acquisition of a 10% share in the company for $8.9 billion. Conversely, Keurig Dr Pepper experienced an 8% decline in its stock price after securing a deal to acquire Dutch-based JDE Peet's for $18 billion.