Stock market today: US stocks slip as Nvidia sell-off drags tech lower
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- US stocks were mostly lower on Monday, driven by a sell-off in tech stocks led by Nvidia.
- Nvidia dropped 5% and is down 14% from its record high amid profit-taking after a 143% year-to-date rally.
- Investors are now focusing on PCE inflation data set to be released Friday morning.
US stocks traded mostly lower on Monday, driven by a continued sell-off in technology stocks.
Nvidia led the tech sector lower, falling about 5% and down about 14% from its record high reached last week.
According to Wall Street firm Constellation Research, the decline in Nvidia stock is simply profit-taking after its massive year-to-date rally of 143%.
"The pullback is coming at a macro level. People are worried about the consumer side, people worried about where the economy is going to head, and they're doing some profit-taking before the summer, so I think it's a good time to buy the dip," Constellation Research founder R "Ray" Wang told CNBC on Monday.
With earnings season over, investors will turn to personal consumption expenditures data on Friday.
Economists expect year-over-year Core PCE to be 2.6% in May, compared to April's reading of 2.7%.
Investors will also be tracking initial jobless claims data, pending home sales, and a second revision to first-quarter GDP, all of which should help determine just how strong the US economy really is.
The data will help inform investors as to when the Fed might initiate its first interest rate cut of the cycle, with markets expecting the first rate cut to occur in September.
Fed President Mary Daly said that the US labor market is showing signs of an inflection point that could ultimately turn lower.
"So far, the labor market has adjusted slowly, and the unemployment rate has only edged up. But we are getting nearer to a point where that benign outcome could be less likely," Daly said in a speech on Monday.
Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:
- S&P 500: , do5,447.85, down 0.31%
- Dow Jones Industrial Average: 39,410.87, up 0.67% (+260.55 points)
- Nasdaq composite: 17,496.82, down 1.09%
Here's what else happened today:
- American's spending patterns are flashing a warning of a possible consumer-led recession.
- Market veteran Ed Yardeni reiterated his view that the S&P 500 will surge to 8,000 by the end of the decade.
- Used electric vehicle prices are plunging as buyers shift back to hybrid vehicles.
- Bitcoin showed signs of violating a key support level that could spark a continued sell-off to the $51,500 level, according to Fairlead Strategies.
- The stock market could triple by 2030 as millennials reshape the economy, according to Fundstrat's Tom Lee.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil jumped 1.18% to $81.68 a barrel. Brent crude, the international benchmark, was higher by 0.95% to $86.05 a barrel.
- Gold edged higher by 0.62% to $2,345.60 per ounce.
- The 10-year Treasury yield was flat at 4.25%.
- Bitcoin dropped 5.49% to $59,713.