The Dow Jones Industrial Average hit a new all-time high on Monday before turning negative but still closing at a record high as investors await inflation data for clues about the path the Federal Reserve might take in cutting interest rates.
The Dow Jones Industrial Average rose 245 points to an intraday record of 41,420 before paring gains. The previous record was 41,376, recorded on July 18.
The blue-chip index rose 65.44 points, or 0.2%, to close at 41,240, surpassing its previous all-time high of 41,198.08 hit on July 17. The S&P 500 fell 0.3%, and the Nasdaq lost 0.9%.
Nvidia fell 2.3% ahead of its earnings report on Wednesday, the most closely watched event on U.S. stock markets this week.
Some investors worry that a stellar showing from Nvidia could derail the rally in Wall Street AI companies including Microsoft Corp., Alphabet Inc. and Meta Platforms Inc.
“Nvidia could disappoint. I think once you get to the point where most people don’t even suspect that bad news is going to come, it’s normal to get bad news,” warned Jake Dollarhyde, CEO of Longbow Asset Management in Tulsa, Oklahoma.
U.S.-listed shares of Tem’s parent company, PDD Holdings, fell 29 percent after the company reported second-quarter earnings that fell short of market expectations.
Of the S&P 500’s 11 sector index, six fell, led by declines in information technology and consumer discretionary.
The energy sector index rose 1% as oil prices rose on reports of disruptions to crude supplies due to geopolitical conflict in the Middle East.
Wall Street rallied, sending the S&P 500 close to a record high, on Friday after Federal Reserve Chairman Jerome Powell said “it’s time to lower borrowing costs” given diminishing risks of rising inflation and easing demand for labor.
In the money market, traders see a 70% chance of a 25 basis point rate cut in September and a 30% chance of a 50 basis point cut, according to CME Group’s FedWatch tool.
Data on personal consumption expenditures for July, the central bank’s key inflation gauge, due on Friday could provide further insight into the trajectory of policy easing.
Dell, Salesforce, Dollar General and Gap are scheduled to report earnings this week.
Boeing shares fell 0.9 percent after NASA chose SpaceX over Boeing’s Starliner to return astronauts to space next year.
