FX.co ★ Wall Street Pulls Back as Investors Await Nvidia Earnings

On Monday, U.S. stocks saw a downturn as investors paused following the strong rally of the previous week, shifting their attention to Nvidia's eagerly awaited earnings report scheduled for Wednesday. The S&P 500 decreased by 0.3%, while the Dow Jones dropped by 349 points after last week's record-breaking surge, with the Nasdaq 100 closing 0.4% lower. The sectors most affected included consumer staples, health, and utilities. Nvidia, which represents 8% of the S&P 500, increased by 1%, whereas Intel's shares declined by 1% following news that the U.S. government acquired a 10% stake in the company, aligning with the Trump administration's broader initiative for a sovereign wealth fund. Investors are also focused on forthcoming economic indicators, such as Friday's PCE inflation report— the Federal Reserve's preferred metric—anticipated to show a rise in core inflation to 2.9%. Concurrently, expectations for an interest rate cut remain high, with traders pricing in approximately an 86% likelihood of such a move in September, following Powell's dovish comments at the Jackson Hole symposium.