Stocks pulled back on Monday, plagued once again by declines in tech, as Wall Street awaited key releases this week, including Nvidia earnings and the September jobs report.
The Dow Jones Industrials index collapsed 557.24 points, or 1.2%, to 46,590.24, as losses in the artificial intelligence chip darling along with Salesforce and Apple pushed the blue-chip index lower.
The S&P 500 faded 61.69 points to close at 6,672.42.
The NASDAQ went south 192.51 points to 22,708.08.
Nvidia dropped 1.9% ahead of the company’s third-quarter results, which are scheduled for after the bell on Wednesday.
The chipmaker and other names in the AI trade were a source of recent pressure as investors have grown anxious about stretched valuations.
Blue Owl Capital, a private credit lender, dropped 7% amid concerns about its heavy lending related to the AI datacenter buildout.
Following Nvidia, Walmart will report before the market opens Thursday, and those results could offer insights into just how tapped out the consumer is and demonstrate if spending is bifurcated, the strategist said.
Alphabet was a bright spot in Monday’s session, surging nearly 3% after Warren Buffett’s Berkshire Hathaway revealed it had taken a stake in the Google and YouTube parent.
Investors were encouraged that Berkshire still finds value in the AI name after a big run this year, although Buffett himself likely was not directly responsible for the purchase, but rather his two equity managers.
Investors were encouraged that Berkshire still finds value in the AI name after a big run this year, although Warren Buffett himself likely was not directly responsible for the purchase, but rather his two equity managers.
The chipmaker and other names in the AI trade were a source of recent pressure as investors have grown anxious about stretched valuations.
Prices for the 10-year Treasury edged up slightly, lowering yields to 4.14% from Friday’s 4.15%. Treasury prices and yields move in opposite directions.
Oil prices declined 31 cents to $59.78 U.S. a barrel.
Gold prices stumbled $58.40 to $4,035.80 U.S. an ounce.
