US stocks slipped on Monday as investors braced for a key earnings update from Nvidia later this week. The Dow Jones Industrial Average dropped 349 points, or 0.77%, to close at 45,282.47. The S&P 500 fell 0.43% to 6,439.32, while the Nasdaq Composite edged 0.22% lower, finishing at 21,449.29.
The moves followed Friday’s powerful rally, when comments from Federal Reserve Chair Jerome Powell boosted expectations of a September rate cut. That surge briefly lifted the Dow to record highs, but momentum has cooled as investors reassess the outlook.
Focus on the Federal Reserve
Market bets for a September quarter-point cut remain strong, with futures pricing in an 84% chance. Powell’s remarks in Jackson Hole signalled the central bank may move next month, but analysts caution against assuming a sustained easing cycle.
Chip stocks in focus
Nvidia shares rose about 1% on Monday, helping the Nasdaq in early trade, before broader weakness pulled the index lower. Analysts have issued upbeat calls on the company ahead of its quarterly report due after the bell Wednesday. Nvidia’s results are widely viewed as a barometer for artificial intelligence demand.
Intel was another focal point after news that the U.S. government has taken a 10% stake in the company. The investment, revealed by Commerce Secretary Howard Lutnick, is part of a strategy to establish a sovereign wealth fund. White House adviser Kevin Hassett said more such transactions are possible, while President Donald Trump declared he would pursue similar deals “all day long.” Despite the headlines, Intel shares ended down roughly 1%.
Australian outlook
Local shares are set to follow Wall Street lower. The SPI 200 futures are pointing to a 0.3% fall. Investors will watch corporate earnings from G8 Education and Coles Group, with Woolworths reporting Wednesday.
The Reserve Bank releases minutes from its August meeting at 11:30am, though they are not expected to be market moving. Attention remains fixed on Nvidia’s results and U.S. inflation data later in the week.
