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Apple ( AAPL ) hit EU antitrust fine in Spotify ( SPOT ) case

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Macy's jumps after Arkhouse, Brigade raise buyout bid

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Crypto stocks soar after bitcoin bursts above $65,000

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Super Micro Computer ( SMCI ) jumps ahead of S&P 500 entry

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Indexes down: Dow 0.39%, S&P 0.16%, Nasdaq 0.15%

(Updated at 9:40 a.m. ET/ 1440 GMT)

By Ankika Biswas and Amruta Khandekar

March 4 (Reuters) -

Wall Street's main indexes dipped on Monday after the S&P

500 and the Nasdaq's record-closing highs in the prior session,

as investors paused at the start of a week packed with key jobs

data and Fed Chair Jerome Powell's congressional testimony.

The Nasdaq kicked off March by hitting an intraday all-time

high on Friday, also closing at its highest level for the second

day, as the artificial intelligence-driven tech rally continues

to steal the spotlight on Wall Street.

The S&P 500 has also been on a record-breaking rally, with

BofA Global Research lifting its year-end target for the

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

from current levels.

"Some type of negative AI development would be your No. 1

risk, and also if inflation remains sticky along with

geopolitical political issues," said Robert Pavlik, senior

portfolio manager at Dakota Wealth.

All eyes will be on monthly non-farm payrolls, JOLTS job

openings and the ADP National Employment report, as well as the

Fed's "Beige Book" scheduled throughout the week for insights

into the economy's health.

The data comes at a time when investors have already pared

expectations for how quickly and deeply the Fed will cut rates,

as a stronger-than-expected economy risks reigniting inflation

if policy eases too soon.

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.

Traders see a 70.5% chance of the first rate cut arriving in

June and 89% odds of that in July, as per CME Group's FedWatch

tool.

At 9:40 a.m. ET, the Dow Jones Industrial Average was

down 151.11 points, or 0.39%, at 38,936.27, the S&P 500

was down 7.97 points, or 0.16%, at 5,129.11, and the Nasdaq

Composite was down 25.21 points, or 0.15%, at 16,249.73.

Seven of the 11 major S&P 500 sectors were in the red, led

by communication services.

Most megacap stocks inched lower, with Apple ( AAPL ) down

2.1% 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.

Nvidia ( NVDA ) outperformed peers with an advance of 3.2%

afterits market value closed above $2 trillion for the first

time on Friday.

Other chipmakers including Micron Technology ( MU ), Arm

Holdings, and U.S.-listed shares of Taiwan Semiconductor

Manufacturing gained between 0.6% and 5.7%.

AI server maker Super Micro Computer ( SMCI ) and shoe maker

Deckers Outdoor ( DECK ) jumped 17.5% and 3.1% respectively

ahead of their inclusion in the S&P 500 index.

Macy's jumped 16.4% after real-estate-focused

investing firm Arkhouse Management and Brigade Capital

Management raised their offer for the department store chain.

Cryptocurrency and blockchain-related firms including

Coinbase Global ( COIN ), Bitfarms, Riot Platforms ( RIOT )

and Marathon Digital ( MARA ) climbed between 3.7% and

7.1% after bitcoin rallied to a two-year high and broke

above $65,000.

Declining issues outnumbered advancers for a 1.04-to-1 ratio

on the NYSE. Advancing issues outnumbered decliners by a

1.10-to-1 ratio on the Nasdaq.

The S&P index recorded 59 new 52-week highs and one new low,

while the Nasdaq recorded 100 new highs and 24 new lows.