(Updates prices at 4:00 p.m. ET/ 2100)

By Sinéad Carew and Ankika Biswas

March 4 (Reuters) - The S&P 500 closed slightly lower on

Monday after hitting a fresh record with advances in chip stocks

offsetting weakness in market heavyweight Apple Inc ( AAPL ) as investors

positioned themselves ahead of economic data and Fed Chair

Jerome Powell's congressional testimony.

Apple ( AAPL ) lost ground following a $2-billion EU

antitrust fine for preventing Spotify ( SPOT ) and other music

streaming services from informing users of payment options

outside its App Store.

But rallies in chip stocks, including Nvidia ( NVDA ) helped

advance the S&P 500 to fresh intraday records as investors

continued to bet on demand for products powering artificial

intelligence (AI) even though were broadly cautious ahead of

economic data.

"This is one of those days where investors are on hold for

the economic data that's coming out later this week," said Burns

McKinney, portfolio manager, NFJ Investment Group.

Investors were waiting for insights into the U.S. economy's

health from key monthly data such as readings on the service

sector, due on Tuesday, and non-farm payrolls data due Friday,

according to Scott Wren, senior global market strategist at

Wells Fargo Investment Institute.

"The market is still trying to digest what the outlook is

for the economy, earnings and the Federal Reserve," said Wren

but he noted that both institutional and retail investors have

some fear of missing out as they watch stocks hit fresh records.

"There's institutional money that can't sit on the books and

watch the S&P 500 go higher every day and retail investors are

starting to have the fear of missing out," said Wren. "Stocks

are expensive but that doesn't mean they can't get more

expensive before some kind of a pullback. Momentum is carrying

the market and positive thinking is carrying the market."

The Dow Jones Industrial Average fell 97.89

points, or 0.25%, to 38,989.49, the S&P 500 lost 6.09

points, or 0.12%, to 5,130.99 and the Nasdaq Composite

dropped 67.27 points, or 0.41%, to 16,207.67.

The Nasdaq had kicked off March by hitting an intraday

record high on Friday, also closing at its highest level for two

straight days, as the artificial intelligence-driven tech rally

continues to steal the spotlight on Wall Street.

The S&P 500 has also been on a winning streak recently,

jumping over 21% with four straight months of gains through

February. BofA Global Research lifted its year-end target for

the benchmark index to 5,400, from 5,000, representing a 5%

upside from current levels.

Powell is due to testify before lawmakers on Wednesday and

Thursday, with analysts assuming the Fed chief to stay in

wait-and-watch mode on policy after a recent escalation in

inflation.

AI server maker Super Micro Computer ( SMCI ) rallied and

shoe maker Deckers Outdoor ( DECK ) rose ahead of their

inclusion in the S&P 500 index.

Shares in Macy's jumped after real-estate-focused

investing firm Arkhouse Management and Brigade Capital

Management raised their offer for the department store chain.