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US moves towards faster stock settlement

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Apple ( AAPL ) near flat despite strong iPhone sales in China

(Updates to close at 4 p.m. EDT)

By Abigail Summerville

NEW YORK, May 28 (Reuters) -

The Nasdaq crossed 17,000 for the first time ever on

Tuesday, boosted by gains in Nvidia ( NVDA ), while the S&P 500 closed

slightly higher and the Dow slightly lower as Treasury yields

rose.

Nvidia ( NVDA ) shares boosted shares of other chip stocks as

traders returned from a holiday-extended weekend.

Stocks lost ground in the afternoon as U.S. Treasury

yields

climbed to multi-week highs

after weak debt auctions.

According to preliminary data, the S&P 500

gained 2.49 points, or 0.05%, to end at 5,307.21 points,

while the Nasdaq Composite gained 101.71 points, or

0.60%, to 17,022.50. The Dow Jones Industrial Average

fell 214.30 points, or 0.55%, to 38,855.29.

Investors awaited U.S. inflation data this week that

could sway expectations for Federal Reserve rate cuts.

The U.S. core Personal Consumption Expenditures Price Index

report for April is due later this week. The Fed's preferred

inflation barometer is expected to hold steady on a monthly

basis.

S&P 500 technology led gains among sectors, while

healthcare was the biggest decliner.

"It's all about technology and the winners continue to be

the winners, specifically Nvidia ( NVDA )," said Michael James, managing

director of equity trading at Wedbush Securities in Los Angeles.

Wall Street has been hitting records recently as investors

bet the U.S. central bank could kick off interest-rate cuts this

year.

Expectations for the timing of rate cuts have see-sawed,

with policymakers wary as data still reflects sticky inflation.

Odds of a rate reduction of at least 25 basis points stand

above the 50% mark only for the months of November and December

this year, according to the CME FedWatch Tool. The odds of a

September rate cut fell to around 46% from over 50% a week ago.

The retail sector will also be in focus this week, with

several retailers like Dollar General ( DG ), Advance Auto Parts ( AAP )

and Best Buy ( BBY ) due to report results.

U.S. trading moves to a shorter settlement on Tuesday, which

regulators hope will reduce risk and improve efficiency, but is

expected to temporarily increase transaction failures for

investors.

Apple ( AAPL ) shares rose after iPhone sales in China

surged 52% in April from a year earlier, Reuters calculations

based on industry data showed. But the stock pared gains late

and closed nearly flat.

GameStop ( GME ) shares shot up. Late on Friday, the

videogame retailer said it had raised $933 million by selling 45

million shares as part of an "at-the-market" offering.