Wall Street ends down as traders focus on Nvidia, Fed after last week's rally

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stocks jumped after U.S. Federal Reserve Chair Jerome Powell hinted at the Jackson Hole Symposium that an interest-rate cut could be considered at the central bank's September meeting, citing recent labor market weakness."The market has a Jackson Hole hangover," said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma. "Investors are taking a little bit of a breather."The Personal Consumption Expenditures Price Index - the Fed's preferred inflation gauge - is due to be released on Friday, while official nonfarm payrolls data is expected next week. The reports will be crucial, especially after Powell said a rate cut was not certain."The focus right now is the labor market," said Brian Klimke, investment director at Cetera Investment Management."We have the job market that's rolling over a little bit and the economy is weakening, so the Fed needs to act sooner than later and they're seeing it too."Nvidia climbed 1% ahead of its quarterly report on Wednesday, which will be one of Wall Street's most closely watched events of the week and a crucial test of the scorching AI trade.With Nvidia making up about 8% of the S&P 500, results of the world's most valuable company affect vast numbers of Americans who use index investment funds to save for retirement."This is an incredibly important event from a market participant standpoint," said Michael Green, portfolio manager at Simplify Asset Management.Powell's comments on Friday nudged major brokerages to revise their expectations, with Barclays, BNP Paribas and Deutsche Bank currently seeing a 25-basis-point reduction in borrowing costs next month.Traders now see an 84% chance of a Fed rate cut in September, according to CME Group's FedWatch tool. Remarks from policymakers John Williams and Lorie Logan later in the day will be scrutinized to see if they share Powell's policy outlook.The S&P 500 declined 0.43% to end the session at 6,439.32 points.The Nasdaq declined 0.22% to 21,449.29 points, while the Dow Jones Industrial Average declined 0.77% to 45,282.47 points.Nine of the 11 S&P 500 sector indexes dropped, led lower by consumer staples, down 1.62%, followed by a 1.44% loss in health care.Friday's optimism helped the blue-chip Dow close at a record high for the first time since December 2024, and the benchmark S&P 500 logged its strongest one-day gain since May.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,461.41 +22.09 (+0.34%)Dow 3045,407.50 +125.03 (+0.28%)Nasdaq21,524.39 +75.09 (+0.35%)Russell 20002,357.41 +18.23 (+0.78%)VIX14.93 +0.14 (+0.95%)Gold3,437.40 +19.90 (+0.58%)PortfolioSign in to access your portfolioSign inTop gainersSATS EchoStar Corporation 51.34 +21.46 (+71.93%)SMTC Semtech Corporation 58.37 +7.37 (+14.45%)HSAI Hesai Group 26.42 +3.04 (+13.00%)LEU Centrus Energy Corp. 208.22 +22.94 (+12.38%)UUUU Energy Fuels Inc. 12.34 +1.40 (+12.85%)Top losersNEGG Newegg Commerce, Inc. 68.47 -16.53 (-19.45%)KDP Keurig Dr Pepper Inc. 29.22 -1.89 (-6.06%)BWLP BW LPG Limited 15.15 -0.84 (-5.25%)FUN Six Flags Entertainment Corporation 24.15 -1.33 (-5.22%)PBF PBF Energy Inc. 24.49 -1.27 (-4.95%)Most activeOPEN Opendoor Technologies Inc. 4.6099 +0.0699 (+1.54%)NIO NIO Inc. 6.71 +0.62 (+10.16%)NVDA NVIDIA Corporation 182.02 +2.19 (+1.22%)LCID Lucid Group, Inc. 2.1250 +0.0450 (+2.16%)WBA Walgreens Boots Alliance, Inc. 11.94 -0.03 (-0.29%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersSATS EchoStar Corporation 51.19 +21.31 (+71.32%)MSFT Microsoft Corporation 500.04 -4.23 (-0.84%)ALLR Allarity Therapeutics, Inc. 1.4600 +0.5187 (+54.81%)NIO NIO Inc. 6.69 +0.59 (+9.77%)HUT Hut 8 Corp. 25.80 +2.35 (+10.02%)Top economic events