Wall Street stocks fell on Monday after a strong surge last week driven by hopes of a rate cut. The Dow Jones Industrial Average and the S&P 500 each fell 0.2%, while the Nasdaq Composite fell 0.3%. The declines came after a more than 800-point surge in the Dow Jones last week that set a new 2025 record, with the S&P 500 and Nasdaq also nearing all-time highs.
Investors are now awaiting earnings from Nvidia (NVDA), the most valuable company in the S&P 500, due out on Wednesday. Analysts expect Nvidia to report earnings of $1.01 per share on revenue of $46.13 billion. The stock’s price target has also continued to rise, reflecting confidence in strong demand for AI hardware. Nvidia shares are now near record highs, up 32% since the start of the year and nearly doubling since the market low in April.
The report will be a key test not only for Nvidia but also for the broader market, with some investors seeing a possible pullback from the technology sector after last weekend's rally. In addition to Nvidia, Dell Technologies and Marvell Technology are due to report on Thursday.
In addition to corporate earnings, market attention will also be on Friday's July PCE inflation report, the Fed's preferred measure of inflation. Economists expect core PCE inflation to rise 2.9% year-on-year, slightly higher than June's 2.8%, which could be a deciding factor in the direction of interest rate policy.
