US equities eased on Monday as investors took a breather following last week’s rally and looked ahead to a series of key earnings and economic data.
The Dow Jones Industrial Average slipped 89 points, or 0.2%, after surging to both intraday and closing records on Friday.
The S&P 500 also fell 0.2%, while the Nasdaq Composite declined 0.3%.
Intel extended its recent advance after Commerce Secretary Howard Lutnick revealed Friday that the US government has taken a 10% stake in the chipmaker.
The move was framed as part of a broader effort by the Trump administration to build a sovereign wealth fund, an initiative White House economic advisor Kevin Hassett reaffirmed on Monday.
The news lifted sentiment around Intel, as investors weighed the potential implications for other large US companies.
Monday’s modest losses came on the heels of a strong finish to the prior week.
On Friday, the Dow rallied more than 800 points, or nearly 2%, to log record intraday and closing levels.
The Nasdaq Composite gained almost 2%, while the S&P 500 rose more than 1%, coming within three points of its all-time high at its session peak.
The late-week surge was fueled by Federal Reserve Chair Jerome Powell’s closely watched speech at the Jackson Hole symposium, where he signalled the central bank could begin cutting interest rates as early as next month.
Traders quickly repriced expectations for monetary easing, with futures markets now assigning about an 84% probability of a quarter-point cut at the September meeting, according to CME Group’s FedWatch tool.
Attention is turning to earnings reports later this week that could shape the market’s next leg.
Nvidia, a key driver of the artificial intelligence trade, is scheduled to report after Wednesday’s closing bell, while Dell and Marvell are set to release results on Thursday.
Analysts say these names could help determine whether technology stocks regain leadership or if the market rotation into other sectors continues.
Investors are also bracing for fresh inflation data. The July personal consumption expenditure price index, the Fed’s preferred gauge, will be released on Friday.
Economists surveyed by Dow Jones expect core PCE, which excludes food and energy, to rise 2.9% from a year earlier, slightly higher than the 2.8% pace recorded in June.
The report will be closely watched as policymakers weigh the case for rate cuts in the coming months.
The jump on Friday
Federal Reserve Chair Jerome Powell hinted at the potential for interest rate cuts during his much-anticipated speech in Jackson Hole, Wyoming, on Friday.
Investors responded positively, with equities rallying sharply as Powell’s comments bolstered expectations that the central bank could ease policy in the coming months.
Stocks ended Friday’s session higher, led by the Dow Jones Industrial Average, which notched a new all-time high.
The S&P 500 also climbed, while the Nasdaq Composite advanced more modestly.
Traders are increasingly confident that the Federal Reserve will move at its September meeting.
According to CME’s FedWatch tool, fed funds futures are now pricing in more than an 85% probability of a quarter-point rate cut, up from less than 65% just a month ago.
The shift highlights how Powell’s remarks have given markets fresh conviction that rate relief is imminent.
The prospect of easier monetary policy has also supported appetite for riskier assets.
Ether surged to new all-time highs over the weekend, its first since 2021, underscoring a broader risk-on tilt as investors venture into cryptocurrencies alongside equities.
Meanwhile, Wall Street is preparing for a key earnings release later this week.
Nvidia, the chipmaker at the centre of the artificial intelligence boom, is due to report results on Wednesday.
The figures are expected to provide critical insight into the strength of the AI trade and its ability to sustain recent market momentum.
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