Stocks declined Monday as investors positioned themselves ahead of a series of major catalysts, including Nvidia’s earnings and the September jobs report.
The Dow Jones Industrial Average slipped 126 points, or 0.3%.
The S&P 500 fell 0.4%, and the Nasdaq Composite lost 0.5%.
Alphabet gained 4% after Berkshire Hathaway disclosed a new stake in the Google parent.
Bitcoin, meanwhile, extended recent weakness, slipping another 0.5% after falling below $95,000 on Friday.
Nvidia dropped more than 2% ahead of its quarterly results due Wednesday afternoon.
The chipmaker and other AI-linked stocks have faced pressure recently as concerns about stretched valuations resurfaced.
Investors are also looking toward Thursday’s September nonfarm payrolls report — the first major data release since the end of the government shutdown’s economic data blackout.
Last week, the Nasdaq Composite fell 0.5%, dragged lower by declines in Alphabet, Amazon, Broadcom and Meta Platforms.
The Dow and S&P 500 managed modest weekly gains, though both suffered steep losses on Thursday.
Federal Reserve Vice Chair Philip Jefferson on Monday endorsed a measured approach to further rate reductions.
He said he supported October’s cut and views current policy as “somewhat restrictive,” but emphasised that officials need to “proceed slowly” as they approach a neutral stance.
“The current policy stance is still somewhat restrictive, but we have moved it closer to its neutral level that neither restricts nor stimulates the economy,” he said.
“The evolving balance of risks underscores the need to proceed slowly as we approach the neutral rate.”
The AI trade
After a week of losses and with Nvidia’s highly anticipated earnings on deck, investors are watching closely to see whether the artificial intelligence trade can regain its footing or if more volatility lies ahead.
The Nasdaq Composite slipped 0.5% last week, while the S&P 500 and Dow Jones Industrial Average posted modest gains.
The pullback puts the tech-heavy Nasdaq on course to end its seven-month winning streak.
Some startup founders have voiced concern that mounting hype could give way to an AI bubble.
Still, large institutional investors remain confident that the market’s focus on AI is justified, as major technology companies continue striking billion-dollar deals across the sector.
Attention now turns to Nvidia’s earnings report, due after Wednesday’s close.
CEO Jensen Huang recently said the company has received “half a trillion dollars” in chip orders for 2025 and 2026 — guidance that has led analysts to expect substantially higher revenue in the coming year.
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