(For a Reuters live blog on U.S., UK and European stock

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Nike ( NKE ) gains after Jefferies upgrades to 'buy'

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Berkshire Hathaway at record high after record Q4 profit

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Domino's Pizza falls after missing Q4 same-store sales

estimates

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Indexes: Dow up 0.07%, S&P 500 down 0.24%, Nasdaq down

0.72%

(Updates for market open)

By Johann M Cherian and Sukriti Gupta

Feb 24 (Reuters) - The S&P 500 and the Nasdaq gave up

early gains and declined in choppy trading on Monday, as

investors awaited results from chip giant Nvidia ( NVDA ) for clues on

the future of demand for artificial intelligence technology.

Most megacap stocks fell, with Tesla sliding

2.7%, Meta down 2.1% and Microsoft ( MSFT ) losing

1.9%.

Microsoft ( MSFT ) has scrapped leases for sizeable data center

capacity in the U.S., suggesting a potential oversupply of AI

infrastructure, TD Cowen analysts said in a note published late

on Friday. The note picked up traction on social media platforms

over the weekend, and several media outlets covered the

development on Monday.

The news comes weeks after the launch of low-cost AI

models from China's DeepSeek in January rattled tech stocks and

stoked doubts about overspending by U.S. companies on the

popular technology.

"Everybody's deepest fear is, even though Microsoft ( MSFT ),

Google, and Meta, have great funding, we don't know that they're

really going to go through on their spending plans again because

the tide is changing," said Kim Forrest, chief investment

officer at Bokeh Capital Partners.

"The note of caution on here is how are they going to

get all this money paid back?"

Chip stocks also fell, with the broader Philadelphia SE

Semiconductor Index down 1.6%.

Nvidia's ( NVDA ) quarterly results, expected on Wednesday, puts the

chip sector in the spotlight for the week.

On the other hand, Apple ( AAPL ) reversed premarket

declines to gain 1.1%. The iPhone maker unveiled planned U.S.

investments to help bring online a factory in Texas by 2026 to

build AI servers and add about 20,000 research and development

jobs across the country.

At 10:11 a.m. ET, the Dow Jones Industrial Average

rose 28.60 points, or 0.07%, to 43,456.62, the S&P 500

lost 14.54 points, or 0.24%, to 5,998.59 and the Nasdaq

Composite lost 141.43 points, or 0.72%, to 19,382.58.

The more domestically-focused Russell 2000 smallcaps index

lost 1%.

Eight of the 11 S&P 500 sectors slipped. Technology

stocks led declines with a 0.9% drop.

U.S. stock indexes were extending losses registered in the

previous week, when a batch of weak economic data and a

disappointing forecast from Walmart ( WMT ) had sparked concerns

that the world's largest economy was stalling. The benchmark S&P

500 and a smallcaps index marked their worst daily

declines of 2025 on Friday.

On the data front, the Personal Consumption Expenditure

index - the Federal Reserve's preferred inflation gauge - is

expected on Friday and could help markets gauge the timing of

the central bank's first rate cut this year.

Interest rate futures indicate the Fed will leave borrowing

costs unchanged for the first half of the year, according to

data compiled by LSEG.

Among other big movers, Berkshire's Class B shares

rose 3.5% to touch a record high after the Warren Buffett-owned

conglomerate reported a record annual profit over the weekend.

Nike ( NKE ) added 5.1% after Jefferies raised its rating on

the athletic apparel maker to "buy" from "hold".

Domino's Pizza fell 5% after the pizza chain missed

expectations for fourth-quarter same-store sales.

Markets are also on edge for any tariff comments from U.S.

President Donald Trump.

Declining issues outnumbered advancers by a 1.37-to-1 ratio

on the NYSE and by a 2.16-to-1 ratio on the Nasdaq.

The S&P 500 posted 22 new 52-week highs and 6 new lows while

the Nasdaq Composite recorded 27 new highs and 149 new lows.