Stocks struggled to hold their ground on Monday, after the S&P 500’s third straight weekly gain, as worries about demand for the semiconductor industry weighed on tech names.
The S&P 500 slipped 0.12% to 4,140.06. The Nasdaq Composite fell 0.10% to 12,644.46. The Dow held on to a gain of 29.07 points to close at 32,832.54.
Nvidia reported weaker-than-expected second-quarter earnings, putting pressure on semiconductor stocks. Shares of the chip giant fell more than 6%, and rival stocks like AMD and Broadcom were also under pressure.
Some clean energy stocks were acquired after the Senate passed the Cut Inflation Act. The measure includes billions of dollars earmarked to fight climate change. The House is expected to pass the measure later this week.
Disney was the top Dow Jones stock, gaining more than 2%.
Monday’s moves follow a weekly rise in the S&P 500 and Nasdaq Composite as a surprisingly strong monthly jobs report eased some recession fears. The resilience of the labor market also signaled that the economy could withstand further rate hikes from the Federal Reserve.
“The question is whether the rally lacks momentum,” said Angelo Kourkafas, investment strategist at Edward Jones. “There are certainly things that have improved after the last month that would, in our view, warrant an upward move, which we have certainly seen. … However, a lot needs to go right for to be able to say that the coast is clear.”
A new reading of the consumer price index, due out on Wednesday, will give investors more clarity on the central bank’s next move at its policy meeting in September.