Aug 26 (Reuters) – The S&P 500 closed lower on Monday, with AI heavyweight Nvidia slipping ahead of its quarterly report this week, as investors awaited inflation data for clues on the trajectory of the U.S. Federal Reserve’s interest rate cuts.
“Nvidia could disappoint. I think when you get to the point where the majority doesn’t even suspect there could be bad news, that’s usually when you get it,” warned Jake Dollarhide, managing director of Longbow Asset Management in Tulsa, Oklahoma.
The S&P 500 lost 0.32% and ended the session at 5,616.84 points.
The Nasdaq fell 0.85% to 17,725.77 points, while the Dow Jones Industrial Average rose 0.16% to 41,240.52 points.
Article 1 of 2 Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 3, 2024. REUTERS/Brendan McDermid/File Photo
According to the CME Group’s FedWatch tool, money markets assume that the probability of a 25 basis point rate cut in September is 70 percent, and the probability of a 50 basis point cut is 30 percent.
Much-anticipated data on July private consumption expenditure, the central bank’s preferred inflation indicator, on Friday could provide further insight into the stance of monetary easing.
Volume on U.S. exchanges was relatively low, with 9.5 billion shares traded, compared to an average of 11.9 billion shares over the previous 20 sessions.
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Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Pooja Desai and David Gregorio
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