NEW YORK (AP) โ Technology stocks led Wall Street lower Tuesday after chipmaker Nvidia retreated ahead of its highly anticipated earnings report this week.
The S&P 500 fell 30.06 points, or 0.6%, to 4,975.51. It's coming off just its second week of losses in the last 16. The losses pushed the benchmark index even further below the record it set last week.
The Dow Jones Industrial Average fell 64.19 points, or 0.2%, to 38,563.80. The Nasdaq Composite fell 144.87 points, or 0.9%, to 15,630.78.
Technology stocks were the biggest drag on the market, with chipmakers being a particularly heavyweight. Nvidia fell 4.4%. It remains the S&P 500's biggest gain so far this year, up about 40%. Wall Street will closely monitor its latest earnings update on Wednesday for clues about its health and the potential of the broader tech sector in 2024.
Several large retailers reported their latest earnings on Tuesday, presenting mixed results. Walmart rose 3.2% after reporting better-than-expected results for its latest quarter and issuing sales forecasts that beat Wall Street expectations. It's also buying smart TV maker Vizio.
Home improvement retailer House deposit was virtually unchanged after a day of shaky trading. It beat Wall Street earnings forecasts but gave investors a disappointing earnings forecast for the year.
The market fell last week after various economic data indicated that inflation remains stubbornly high. That halted a rally that began in late October based on hopes that inflation would cool enough to allow the The Federal Reserve will cut interest rates.
"The narrative that got us to these levels is being highly contested," said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.
At this point, Wall Street expects the first rate cut to come in June, months later than expected. Investors will have to wait until the end of February for another key update on inflation. That's when the government will release its monthly report on personal consumption and spending, the Federal Reserve's preferred measure of inflation.
โThe key question to answer now is whether inflation is bottoming out and, if so, whether it is deviating or retreating,โ Samanรก said.
Investors have a relatively light week of economic news. Data on home sales will be released on Thursday. The housing market remains tight as demand for housing continues to outpace supply. Mortgage rates They remain high, although they have been declining since their most recent peak in late October, when the average rate on a 30-year mortgage reached 7.79%.
Several companies will report their results this week. Online craft marketplace Etsy will report Wednesday. TurboTax maker Intuit will report Thursday, along with online travel company Booking Holdings.
More than 80% of the S&P 500 companies have published their latest results. Analysts surveyed by FactSet expect overall earnings growth of about 3.3% for the fourth quarter and forecast earnings growth of about 3.6% for the current quarter.
Discover Financial Services soared 12.6%, the most in the S&P 500, after agreeing to be acquired by Capital One Financial for about 35,000 million dollars.
Bond yields fell. The 10-year Treasury yield fell to 4.27% from 4.28% late Friday. The two-year Treasury yield fell to 4.61% from 4.65%.
Business writers Yuri Kageyama and Matt Ott contributed to this report.
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