Quick overview

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The S&P 500 Index declined from its peak amid Nvidia’s drop, and other tech companies countered Broadcom’s rally, which previously boosted chip and tech stocks.

The S&P 500 reached an intraday high but then fell 0.3 percent. Meanwhile, the Nasdaq 100 Index rose by 0.1 percent. The Magnificent Seven companies’ index declined 0.3 percent. The Cboe VIX Index was around fifteen.  Nvidia, the world’s most valuable firm, dropped 2.70 percent after it was revealed that it was helping OpenAI develop an accelerator chip for artificial intelligence.
AMD declined by 6.6 percent, and Microsoft lost 2.6 percent.

The S&P 500’s losses were mainly driven by Nvidia, but cyclical companies, which are highly sensitive to economic changes, also performed poorly, with energy and financial stocks falling more than 1 point.

Friday’s weaker-than-expected jobs report increased economic uncertainty but also boosted expectations for a Federal Reserve interest rate cut later this month.
U.S. employment decreased in June for the first time since 2020, while nonfarm payrolls rose by 22,000 in August. A report released on Friday by the Bureau of Labor Statistics showed that the unemployment rate slightly increased to 4 percent.

Chair Jerome Powell hinted at the central bank’s September interest rate cut at the Federal Reserve’s annual Jackson Hole symposium last month, which has traders hedging their wagers.

Energy stocks declined as oil prices fell, after Saudi Arabia stated it wanted OPEC+ to consider increasing production. As geopolitical tensions, anxiety, and threats to the US central bank’s independence prompted investors to seek safety in gold, stocks broke a 2011 high. Interest-rate sensitive homebuilder stocks also performed well.