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

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Macy's jumps after Arkhouse, Brigade raise buyout bid

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

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Indexes down: Dow 0.26%, S&P 0.08%, Nasdaq 0.24%

(Updated at 11:39 a.m. ET/1639 GMT)

By Ankika Biswas and Amruta Khandekar

March 4 (Reuters) -

Wall Street's main indexes lost some steam 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.

Most megacap stocks dropped, with U.S. Treasury yields on

the rise. Apple ( AAPL ) fell 2.6% 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.

Outperforming peers, Nvidia ( NVDA ) jumped 3.5% after its

market value closed above $2 trillion for the first time on

Friday.

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,

jumping over 21% in 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.

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.

"The biggest short-term headwind (is) if we get any hawkish

commentary from Powell or the jobs report indicates a relative

strength in the jobs market, which would make it less likely for

any shorter-term Fed cuts," said Michael James, managing

director of equity trading at Wedbush Securities in Los Angeles.

Traders see a 69% chance of the first rate cut arriving

in June and 88% odds of that in July, as per CME Group's

FedWatch tool.

At 11:39 a.m. ET, the Dow Jones Industrial Average

was down 100.86 points, or 0.26%, at 38,986.52, the S&P 500

was down 3.91 points, or 0.08%, at 5,133.17, and the

Nasdaq Composite was down 39.30 points, or 0.24%, at

16,235.64.

Out of the 11 major S&P 500 sector indexes, communication

services led losses with a 1.6% drop.

Meanwhile, a rally in chip stocks pushed the Philadelphia SE

Semiconductor index to a record high.

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

Deckers Outdoor ( DECK ) jumped 24.1% and 2.9% respectively

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

Macy's jumped 16.2% after real-estate-focused

investing firm Arkhouse Management and Brigade Capital

Management raised their offer for the department store chain.

Advancing issues outnumbered decliners by a 1.01-to-1 ratio

on the NYSE. Declining issues outnumbered advancers for a

1.25-to-1 ratio on the Nasdaq.

The S&P index recorded 93 new 52-week highs and five new

lows, while the Nasdaq recorded 159 new highs and 67 new lows.