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Nvidia ( NVDA ) falls after report Blackwell chips overheating

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Tesla jumps after report Trump team's could ease rules

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CVS Health ( CVS ) gains on new board appointments in Glenview

deal

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Indexes: Dow down 0.03%, S&P 500 up 0.43%, Nasdaq up 0.67%

(Updated at 11:58 a.m. ET/ 1658 GMT)

By Lisa Pauline Mattackal and Purvi Agarwal

Nov 18 (Reuters) -

The S&P 500 and the Nasdaq rebounded on Monday, recovering

some losses as Tesla jumped on the prospect of

favorable policy changes from the incoming Trump administration

and investors awaited quarterly results from AI leader Nvidia ( NVDA ).

Earnings from Nvidia ( NVDA ), which reports

third-quarter earnings on Wednesday, will be crucial as

investors assess if the euphoria around AI, which drove much of

markets' rally this year, can be sustained.

The chip designer, which powered 20% of the S&P 500's

return over the past year, is expected to drive nearly 25% of

its EPS growth in the third quarter, according to BofA Global

Research. Nvidia's ( NVDA ) shares dipped 1.5% after a report said its

new AI chips were overheating in servers.

"What we got last week was a hangover from the

post-election rally. We've been able to rally back a little

(after the selloff), but it's kind of slow," said Jay Woods,

chief global strategist, Freedom Capital Markets.

"If we see anything that leads to downward pressure

pricewise (from Nvidia ( NVDA )), it could drag the whole Semiconductor

index and that doesn't bode well," Woods said.

Consumer Discretionary stocks gained 1.2%

after Tesla jumped 6.5% following a report that members

of President-elect Donald Trump's transition team were seeking

to ease U.S. rules for self-driving cars.

Shares of Uber ( UBER ) and Lyft ( LYFT ) fell 7% and

4%, respectively.

Information Technology stocks were up 0.2%,

buoyed by Microsoft ( MSFT ), which edged up 0.2%, and Apple ( AAPL )

, which rose 1.5%. Gains in these stocks also boosted

the Nasdaq.

The Dow Jones Industrial Average fell 14.27

points, or 0.03%, to 43,430.72, the S&P 500 rose 24.57

points, or 0.43%, to 5,895.64 and the Nasdaq Composite

gained 124.83 points, or 0.67%, to 18,805.96.

Rising expectations that the Federal Reserve will slow

the pace of policy easing and uncertainty over the impact of

Trump's cabinet appointments led to the S&P 500 and the

Nasdaq logging their worst weekly losses in more than

two months last week.

With the key holiday shopping season set to commence,

results from major retailers including Walmart ( WMT ), Lowe's

Companies and Target ( TGT ) will be closely watched

this week to gauge the strength of the U.S. consumer.

Stock indexes have shed some of the sharp gains that

followed Trump's decisive victory, but Wall Street remains

fairly well placed as 2024 winds down. The benchmark index has

gained about 23% year-to-date.

The NAHB Housing Market index rose to 46, beating an

estimate of 43, while an index of housing stocks edged

0.2% higher on the day.

Traders are pricing in a 41.3% chance the Fed will keep

interest rates on hold in December, according to the CME's

FedWatch.

CVS Health's ( CVS ) shares gained 5.5% after the health

insurer said it would add four new members to its board in an

agreement with Glenview Capital Management.

Advancing issues outnumbered decliners by a 2.17-to-1

ratio on the NYSE, and by a 1.28-to-1 ratio on the Nasdaq.

The S&P 500 posted 24 new 52-week highs and 12 new lows,

while the Nasdaq Composite recorded 49 new highs and 202 new

lows.