- U.S. stocks fell mostly on Monday, led by a sell-off in tech stocks, led by Nvidia.
- Nvidia has fallen 5% since the start of the year on profit-taking after rising 143% since the start of the year, and is down 14% from its all-time high.
- Investors are now focused on PCE inflation data due to be released on Friday morning.
U.S. stocks were mostly lower on Monday, driven by continued selling in technology stocks.
Nvidia led the tech sector decline, falling about 5% and down about 14% from an all-time high it hit last week.
According to Wall Street research firm Constellation Research, Nvidia’s stock decline is simply due to profit-taking after a massive 143% increase this year.
“The selloff is happening at a macro level. People are worried about the consumer side, they’re worried about the future of the economy, there’s some profit-taking before the summer, so I think now is a good time to buy low,” Constellation Research founder R. “Ray” Wang told CNBC on Monday.
With earnings season coming to an end, investors will be focused on personal consumption expenditures data on Friday.
Economists expect core PCE to grow to 2.6% year-on-year in May, up from 2.7% in April.
Investors will also be tracking jobless claims, pending home sales and a second revision of first-quarter GDP, all of which should help gauge how strong the U.S. economy actually is.
The market expects the first rate cut to come in September, and this data will help inform investors on when the Fed might begin cutting rates for the first time in the cycle.
Federal Reserve Governor Mary Daly said the U.S. labor market is showing signs of an inflection point that could eventually lead to a slowdown.
“So far, the labor market adjustment has been moderate, with the unemployment rate only rising slightly. But we are approaching a point where such a favorable outcome becomes less likely,” Daly said in Monday’s speech.
As of the close of trading at 4pm on Monday, U.S. stock indexes were as follows:
Here’s something else that happened today:
Commodities, Bonds and Cryptocurrencies:
- West Texas Intermediate crude rose 1.18% to $81.68 a barrel, while the international benchmark Brent crude rose 0.95% to $86.05 a barrel.
- Gold rose 0.62% to $2,345.60 per ounce.
- The yield on the 10-year Treasury note was flat at 4.25%.
- Bitcoin fell 5.49% to $59,713.
