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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 0.08%, S&P 500 up 0.10%, Nasdaq up 0.24%
(Updated at 09:43 a.m. ET/1443 GMT)
By Lisa Pauline Mattackal and Purvi Agarwal
Nov 18 (Reuters) -
Wall Street's main indexes were mixed on Monday, as
investors looked ahead to earnings from AI-chip leader Nvidia ( NVDA )
following a rout the previous week on apprehensions about Donald
Trump's cabinet appointments and the central bank's policy path.
Results from Nvidia ( NVDA ), which reports third-quarter
earnings on Wednesday, will be crucial as investors assess if
the euphoria around AI, responsible for much of markets'
tech-driven rally this year, can be sustained. Its stock has
nearly tripled in value this year.
Nvidia's ( NVDA ) shares
fell 2.8%, after a report said its new AI chips were
overheating in servers, weighing on the Information Technology
sector, which lost 0.3%.
"I'm optimistic that they're going to continue to beat,
but... optimism has been so high on that particular name
(Nvidia ( NVDA )) that you can't help but see some potential for a bit of
a selloff," said Robert Pavlik, senior portfolio manager at
Dakota Wealth.
Meanwhile, Consumer Discretionary stocks
gained 1.4% after Tesla jumped 7.2% following a report
that members of Trump's transition team were seeking to ease
U.S. rules for self-driving cars. The EV-maker's gains also
boosted the tech-heavy Nasdaq.
Shares of Uber ( UBER ) and Lyft ( LYFT ) fell more than
4% each.
Most megacaps edged higher, with Alphabet up
0.7% and Apple ( AAPL ) up 0.6%.
However, healthcare stocks such as UnitedHealth ( UNH )
and Amgen ( AMGN ) weighed on the Dow.
The Dow Jones Industrial Average fell 35.21
points, or 0.08%, to 43,409.78, the S&P 500 rose 5.59
points, or 0.10%, to 5,876.21 and the Nasdaq Composite
gained 44.44 points, or 0.24%, to 18,724.56.
Rising expectations that the Federal Reserve will slow
its policy easing pace and uncertainty over the impact of U.S.
President-elect Donald 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.
"The market's post-election rally tapped the brakes last
week," said Chris Larkin, managing director of trading and
investing at E*TRADE from Morgan Stanley, adding Nvidia's ( NVDA )
earnings would likely dictate the market's short-term direction.
With the key holiday shopping season set to begin,
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 nearly 3% in November and about 23% year-to-date.
A host of Federal Reserve officials are slated to speak
this week and their comments will be followed closely after
Chair Jerome Powell said the Fed was in no hurry to cut rates.
Traders are pricing in a 41.6% chance the Federal Reserve
will keep interest rates on hold in December, according to the
CME FedWatch.
CVS Health's ( CVS ) shares gained 2.7% 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 1.62-to-1
ratio on the NYSE, and by a 1.31-to-1 ratio on the Nasdaq.
The S&P 500 posted 12 new 52-week highs and eight new
lows, while the Nasdaq Composite recorded 20 new highs and 105
new lows.