Nasdaq Drops as Big Tech Takes a Hit Ahead of Nvidia Earnings – US Market Wrap

The world’s largest technology companies dragged down stocks after a rally that brought the market close to all-time highs, with Nvidia’s earnings due in just a few days.

A gauge of the “Magnificent Seven” megacaps fell 1.2%, dragging down the S&P 500. Its equal-weighted version, which gives Target the same clout as Microsoft, hovered near all-time highs on hopes that the bull market will expand beyond big tech after Jerome Powell signalled Friday that the Fed will cut interest rates soon. The Dow Jones Industrial Average set a record.

Traders continued to keep a close eye on US policymakers, with Fed Bank of San Francisco President Daly telling Bloomberg Television that she believes it is time to start cutting rates. Her Richmond counterpart, Thomas Barkin, says he still sees inflation risks, but he supports “dialling down” rates in response to a cooling labour market.

The S&P 500 fell to around 5,615 on thin trading volume. The tech-heavy Nasdaq 100 fell 1%. The Russell 2000 index of smaller firms closed with little change.

Treasury 10-year yields increased two basis points to 3.82%. Oil prices rose after Libya’s eastern government announced that exports would be halted, adding to Middle Eastern tensions following Israeli strikes on Hezbollah targets in southern Lebanon.