US stocks closed lower as investors assessed US interest rate forecasts and awaited Nvidia's quarterly report, after a rally last Friday that sent the Dow Jones index to its highest closing level.
Nvidia shares rose 1% ahead of Wednesday's quarterly report, which will be the main focus of Wall Street this week and a key test for the artificial intelligence (AI) market.
Contributing about 8% to the S&P 500, Nvidia's decision to become the world's most valuable company has a big impact on millions of Americans who invest in index funds for retirement.
The S&P 500 average fell 0.43% to 6,439.32 points, the Dow Jones fell 0.77% to 45,282.47 points, while the technology-focused Nasdaq fell 0.22% to 21,449.29 points.
On Friday, stocks surged after Federal Reserve (Fed) Chairman Jerome Powell suggested a possible rate cut at the September meeting due to labor market weakness.
In other news, the Personal Consumption Expenditures (PCE) Price Index – the Fed’s preferred inflation gauge – will be released on Friday, while NFP employment data is due next week.
The report is significant after Powell stressed that a rate cut is still far from certain.
Meanwhile, shares of furniture retailers RH and Wayfair fell more than 5% after President Donald Trump announced an investigation into furniture import tariffs.
Intel shares fell 1% after Trump revealed the US government’s involvement in the company and planned a new deal after the Intel deal.
Volume on US exchanges hit $14.2 billion, compared to an average of $17.1 billion over the full 20 trading days.
