4:13pm: Caution prevails
US stocks finished Monday’s session lower, with the Dow Jones pulling back from a rally driven by rate cut hopes. The index shed 0.8% at 45,282 points, while the S&P 500 was down 0.4% at 6,439 points and the Nasdaq was down 0.2% at 21,449 points.
Investors remained cautious ahead of Nvidia’s earnings report due on Wednesday, which is set to be a pivotal moment for both the chipmaker and the broader tech sector, according to Wedbush analysts.
“There is one chip in the world fueling the AI Revolution and that is Nvidia,” the firm wrote, stressing that demand for its processors is running at a 10:1 ratio against supply.
Wedbush believes Nvidia's results and commentary from CEO Jensen Huang will be another positive catalyst for tech stocks and a reminder that “this is still only the bottom of the 2nd inning in the 9-inning game around building out the AI Revolution.”
3:35pm: Proactive news headlines
- Sona Nanotech Inc (CSE:SONA, OTCQB:SNANF) announced that it has completed treatment and follow-up assessments for the first cohort of patients in its early feasibility study of Targeted Hyperthermia Therapy (THT) for late-stage melanoma.
- Blockmate Ventures Inc (TSX-V:MATE, OTCQB:MATEF) announced that its investee company, Hivello Holdings, has been featured in a Forbes article titled “DePIN Passive Income: 5 Ideas That Really Work.”
- First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF) announced the closing of its most recent non‑brokered private placement, raising a total of C$2.95 million.
- HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) announced it has surpassed 16 exahash per second (EH/s) of global Bitcoin mining hashrate, moving closer to its target of 25 EH/s by US Thanksgiving.
2:45pm: Market movers
- Roblox Corp (NYSE:RBLX) shares added almost 8% at about $126 on Monday morning after the gaming platform saw bullish commentary from several analysts, citing its strong user growth and monetization prospects.
- Ørsted (OTC:DNNGY) shares fell almost 17% to record lows after the US government ordered a halt to construction of the company’s nearly-completed Revolution Wind project off the coast of Rhode Island, casting fresh uncertainty over its US expansion plans.
- Keurig Dr Pepper Inc (NASDAQ:KDP) announced it has agreed to acquire Dutch coffee and tea company JDE Peet’s in an all-cash deal valued at about $18 billion, sending its shares lower on Monday.
1:06pm: Furniture stocks slip
US furniture stocks fell on Monday following President Donald Trump’s announcement of a new tariff investigation on imported furniture.
This investigation, set to be completed within 50 days, will determine tariffs on furniture imported into the United States from other countries at a yet-to-be-determined rate.
The investigation seeks to boost domestic production in key furniture hubs such as North Carolina, South Carolina, and Michigan.
Shares of companies reliant on imports fell sharply. RH dropped 5.2% to $231, Wayfair fell 5.6% to $74, and Williams-Sonoma slid 1.5% to $200.
12.11pm: New home sales slip
Sales of new US single-family homes edged down in July, reflecting ongoing pressures from high mortgage rates, even after a sharp upward revision to June’s numbers.
According to the Commerce Department’s Census Bureau, new home sales fell 0.6% to a seasonally adjusted annualized rate of 652,000 units, while June’s pace was revised up to 656,000 from 627,000.
Economists had expected July sales to rise to 630,000 units, meaning the actual pace, while lower month-over-month, still exceeded forecasts.
On a year-over-year basis, sales were down 8.2%, which Deutsche Bank analysts believe implies that high mortgage rates, economic uncertainty and a softening labor market are keeping buyers on the sidelines.
"Single-family home builders face added pressure from elevated inventories, which is likely to discourage a near-term rebound in single-family construction," analysts wrote.
11:02am: Week ahead
Investors head into the final week of August with risk appetite buoyed by Federal Reserve Chair Jerome Powell’s dovish pivot at Jackson Hole, but with several critical data releases and earnings reports that could test market momentum.
Powell’s speech on Friday marked a clear shift in tone, with the Fed chair warning that recent softness in US labor data suggests “downside risks to employment are rising” and that such risks “can do so quickly in the form of sharply higher layoffs and rising unemployment.”
Markets interpreted the remarks as effectively front-loading a 25 basis point rate cut ahead of the Fed’s September 16 to 17 meeting, unless upcoming jobs or inflation data provide an unexpected upside surprise.
This week, attention turns to Thursday’s US GDP update and Friday’s release of the Fed’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) index.
Economists expect Q2 GDP to show a 3% rebound after tariff-related distortions weighed on the prior month’s reading.
Core PCE is forecast to rise 0.3% month-on-month in July, pushing the annualized rate toward 2.9%, a potential five-month high. A stronger print could complicate the Fed’s path to easing, while a softer reading would reinforce expectations for a September rate cut.
Several Fed officials are also due to speak this week, including Governor Christopher Waller and regional presidents from New York, Dallas, and Richmond. Their remarks will be closely parsed for confirmation or pushback on Powell’s dovish shift.
9:52am: Wall Street cautious
The US stock market opened modestly lower on Monday, following a strong rally on Friday triggered by Fed chair Jerome Powell's comments suggesting potential interest rate cuts in September.
The Dow Jones was down 0.3% at 45,514 points, the S&P 500 slipped 0.2% at 6,454 points and the Nasdaq was down 0.2% at 21,444 points.
Investors are cautious ahead of several economic reports released today, including New Home Sales, the Chicago Fed National Activity Index, and the Dallas Fed Manufacturing Index, which may provide more data cues for the Fed's next moves.
8:32am: Stocks pull back
US stocks are set to open lower on Monday, following a surge on Friday driven by rate cut optimism.
Investors last week welcomed signals from Federal Reserve chair Jerome Powell that rate cuts could start as soon as September, with the Dow Jones adding more than 800 points or 1.8%. The Nasdaq also finished the day 1.9% higher, while the S&P 500 was up 1.5%.
“Investors lapped up Jerome Powell’s words like honey on Friday, as the man has apparently been troubled enough by the latest weakness in jobs numbers to say that this situation ‘suggests that downside risks to employment are rising’ and that ‘if those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment,’” Swissquote Bank senior analyst Ipek Ozkardeskaya said.
“And no one wants that to happen – especially after heavy criticism from the White House pointing at Powell as Mr Too Late.”
Ozkardeskaya added that Powell basically delivered the 25 basis point cut before the September meeting.
“Unless we see a major positive surprise in the next jobs data, or a major quickening in inflation numbers, September will bring the first rate cut since last September’s 50 basis point cut,” Ozkardeskaya said.
“But let’s eat one lion at a time. For now, markets are happy, and risk investors got the best of what they wished for from this Jackson Hole speech.”
Investor focus has also turned to Nvidia, which will report its second quarter earnings this week – a major test for the chipmaker whose shares are near a record high, up 32% so far this year.
Dell and Marvell Technology will also report earnings on Thursday.
Thursday’s US GDP update and Friday’s PCE reading, the Fed’s favored inflation gauge, will test the Fed’s new outlook.
“With a dovish policy shift in hand, the door is open to fresh positive pressure across the equity markets,” Ozkardeskaya said.
“The S&P 500 jumped 1.5% and closed the week a touch below an all time high, while small-cap stocks, which need lower rates more than anyone else, soared nearly 4%.”
The Dow Jones is set to kick off Monday’s session 0.2% lower, while the S&P was down 0.2% and the Nasdaq fell 0.3% premarket.