The S&P 500 saw a slight dip on Monday, concluding a fluctuating trading session lower as market participants paused, anticipating forthcoming economic updates and Federal Reserve Chairman Jerome Powell’s testimony before Congress. Despite Apple’s 2.5% drop due to a $2-billion EU antitrust penalty affecting its App Store practices, the semiconductor sector, led by Nvidia, injected optimism with gains amid expectations for sustained demand in AI technology. This optimism momentarily pushed the S&P 500 to new intraday heights, although the index retreated towards the end of trading.
Investor sentiment was largely cautious, with an eye on key economic indicators set to release, such as service sector data and non-farm payroll figures. While the market navigates through expectations for the economy, corporate earnings, and Fed policies, there’s a noticeable ‘fear of missing out’ among both institutional and retail investors as stocks continue to reach record levels. The Dow Jones and Nasdaq also experienced declines, reflecting broader market apprehension. Meanwhile, specific sectors like utilities saw gains, contrasting with the communications services’ sector downturn. As the AI-driven tech rally propels the Nasdaq to new heights, and with the S&P 500 maintaining its upward trajectory, all eyes are on Powell’s upcoming congressional testimony for further market direction.
