US Stocks Trim Friday Rally
US stocks fell slightly on Monday, reducing gains from the previous session as investors reassessed potential Federal Reserve rate cuts. The S&P 500 and Dow were about 0.3% lower, close to record highs. Fed Chairman Powell indicated that a weakening labor market might lead to rate adjustments in September, but inflation concerns limited equity gains. Nvidia dropped 0.5% ahead of earnings, while Intel rose 1.5% after a government stake acquisition. Keurig Dr Pepper fell 8% following its $18 billion acquisition of JDE Peet.
US stocks inched lower on Monday, trimming the sharp gains from the last session as markets reconsidered the magnitude of rate cuts to be delivered by the Federal Reserve in their incoming cycle.
The three main stock indices in were around 0.3% lower, with the S&P 500 and the Dow trading within 0.5% of their record highs.
Fed Chairman Powell noted on Friday that evidence of a weakening labor market could warrant an adjustment to rates in the Fed's September meeting, paving the way for a rate cut if jobs and price data refrain from showing surprises.
Still, concerns of high inflation voiced by other FOMC members prevented a sharper rally for equities.
Nvidia dropped 0.5% ahead of its earnings release on Wednesday, while concerns of frothy tech valuations held unease in the heavyweight sector.
In the meantime, Intel jumped 1.5% after the US government acquired a 10% stake in the company.
Lastly, Keurig Dr Pepper sank 8% after acquiring Dutch-based JDE Peet for $18 billion.
