U.S. stocks were mostly lower on Monday, led by a selloff in technology stocks led by Nvidia.
Nvidia fell 5% and is down 14% from its record high amid profit-taking after rising 143% year-to-date.
Investors are now focusing on the PCE inflation data which will be released on Friday morning.
US stocks traded mostly lower on Monday, led by a continued sell-off in technology stocks.
Nvidia led the tech sector lower, falling about 5% and down about 14% from its record high set last week.
According to Wall Street firm Constellation Research, Nvidia’s stock decline is simply profit-taking after its massive 143% rise since the start of the year.
“The pullback is happening at the macro level. People are worried on the consumer side, they’re worried about where the economy is going, and they’re taking profits before the summer, so I think that’s is a good time to buy the dip, ” Constellation Research founder R “Ray” Wang told CNBC on Monday.
With earnings season over, investors will turn their attention to personal consumption spending data on Friday.
Economists expect year-over-year Core PCE to be 2.6% in May, up from 2.7% in April.
Investors will also be tracking initial data on jobless claims, pending home sales and a second revision of first-quarter GDP, all of which should help determine the true strength of the U.S. economy.
This data will help investors know when the Fed might initiate its first interest rate cut of the cycle, with markets expecting the first rate cut to take place in September.
Fed Chair Mary Daly said the U.S. labor market is showing signs of an inflection point that could ultimately decline.
“So far, the labor market has adjusted slowly and the unemployment rate has only increased. But we are approaching a point where this benign outcome may be less likely,” Daly said in a speech on Monday.
Here is where the American indices stood at the 4:00 p.m. close on Monday:
Here’s what happened today:
In commodities, bonds and cryptocurrencies:
West Texas Intermediate Crude oil jumped 1.18% to $81.68 a barrel. Brent crudethe international benchmark, was up 0.95% at $86.05 a barrel.
Gold edged up 0.62% to $2,345.60 an ounce.
The 10-year Treasury yield remained stable at 4.25%.
Bitcoin fell 5.49% to $59,713.
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