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PDD Holdings ( PDD ) slumps after quarterly revenue miss

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Oil shares up on supply disruption fears, Middle East

tensions

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Boeing ( BA ) slips as NASA picks SpaceX over Starliner

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S&P 500 -0.53%, Nasdaq -1.13%, Dow -0.04%

(Updates at 1:57 p.m. ET/ 1757 GMT)

By Johann M Cherian and Noel Randewich

Aug 26 (Reuters) - The S&P 500 retreated from

near-record highs on Monday, with AI heavyweight Nvidia ( NVDA ) dipping

ahead of its quarterly report this week, while investors awaited

inflation data for clues about the path of interest-rate cuts by

the Federal Reserve.

Nvidia ( NVDA ) dropped 2.6% ahead of its report on

Wednesday in what is set to be the U.S. stock market's most

closely watched event of the week.

Some investors worried that anything short of a stellar

forecast

from Nvidia ( NVDA ) could shatter Wall Street's rally in AI-related

companies, including Microsoft ( MSFT ), Alphabet and

Meta Platforms ( META ).

"Nvidia ( NVDA ) could disappoint. I think when you get to the

point where the majority doesn't even suspect that there could

be a piece of bad news, that's typically where you get it,"

warned Jake Dollarhide, chief executive of Longbow Asset

Management in Tulsa, Oklahoma.

U.S.-listed shares of PDD Holdings ( PDD ) tumbled 29%

after the Temu-owner missed market expectations for

second-quarter revenue.

The S&P 500 was down 0.53% at 5,604.90 points.

The Nasdaq declined 1.13% to 17,675.64 points, while the

Dow Jones Industrial Average was down 0.04% at 41,160.67 points.

Of the 11 S&P 500 sector indexes, six declined, led lower

by information technology, down 1.48%, followed by a

1.06% loss in consumer discretionary.

The energy sector index jumped 1% following reports

of oil supply disruptions amid the geopolitical conflict in the

Middle East lifted crude prices.

Wall Street rallied on Friday, with the S&P 500

nearing record highs after Fed Chair Jerome Powell said "the

time has come" to lower borrowing costs in the light of a

diminishing upside risk to inflation and moderating labor

demand.

Money markets suggest traders see a 70% chance of a 25 basis

point interest rate cut and a 30% chance of a 50 basis point cut

in September, according to the CME Group's FedWatch tool.

Friday's highly anticipated Personal Consumption Expenditure

data for July, the central bank's preferred inflation gauge,

could provide more insight into the policy easing trajectory.

Results from Dell, Salesforce ( CRM ), Dollar

General ( DG ) and Gap are on tap this week.

Boeing ( BA ) slipped 0.4% after NASA picked SpaceX over the

planemaker's Starliner to return its astronauts from space next

year.

Advancing issues outnumbered falling ones within the S&P

500 by a 1.1-to-one ratio.

Across the U.S. stock market, declining stocks

outnumbered rising ones by a 1.1-to-one ratio.