The Dow Jones Industrial Average (^DJI) closed at a record high on Monday while the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) slipped as shares of Nvidia (NVDA) fell roughly 2% ahead of its highly anticipated quarterly results later this week.

The Dow Jones Industrial Average rose 0.1% to close at 41,240.52 as Materials (XLP), Utilities (XLU), and Energy (XLE) gained.

Technology (XLK) stocks underperformed during the session with Broadcom (AVGO) and EV maker Tesla (TSLA) falling more than 3%, dragging on the Nasdaq and S&P 500.

PDD Holdings (PDD), also known as Pinduoduo, the parent company of e-commerce platform Temu, tumbled 28% following the release of disappointing second quarter results.

Stocks were coming off Friday gains after Fed Chair Jerome Powell indicated policymakers were ready to pivot and cut at the next FOMC meeting in September.

Now that Fed Chair Jerome Powell has opened the door for a rate-cutting cycle to begin, economists have reasoned how deeply the Fed will cut in 2024 will largely depend on how the labor market holds up.

If the August jobs report, due out on Sep. 6, confirms that labor market weakness in the July report may have been overstated, many economists argue the Fed will begin with a 25 basis point interest rate cut.

In other words, the Fed wouldn't need to slash rates because of persistent signs the economy is weakening. And to many strategists, this remains the key thing investors should be focusing on when thinking about Federal Reserve cuts.

If the Fed cuts because the economy needs help, it hasn't been good for stocks. Research from Truist co-chief investment officer Keith Lerner sent to clients on Monday shows that the S&P 500 was at least 11% higher a year after the first Fed interest rate cut dating back to 1989, as long as the economy remained on solid footing.

However, when the US economy entered recession in the following 12 months, the S&P 500 fell by at least 14% over the next year, per Lerner's research.

This provides a clear read-through for today's environment. If the Fed is forced to cut more aggressively because of a significant downturn in the labor market, history says that isn't a welcome sign for the stock market.

Nvidia (NVDA) stock fell more than 2% on Monday as investors await the chip giant's quarterly results set for Wednesday after the closing bell.

Yahoo Finance's Dan Howley reports:

Nvidia’s earnings announcement — the most anticipated results of the quarter — will send ripple effects throughout the tech sector as investors look for signs that the AI trade will continue to dominate market conversations into the second half of the year.

Nvidia stock is up more than 163% year to date and 60% in the last six months. Rival AMD’s (AMD) stock price is up 9% year to date and down some 14% over the last six months.

Intel (INTC) shares have collapsed 57% since the start of the year and are down 53% over the last six months as the company continues to struggle amid its massive turnaround effort.

Read more here.

Yahoo Finance's David Hollerith reports:

A pivot from Federal Reserve Chair Jerome Powell has investors betting that US bank stocks are poised to move higher as lower interest rates are expected to provide much-needed relief to some beleaguered lenders.

That wager sent an index tracking midsize regional banks (^KRX) up 5% Friday, the biggest single-day advance for the index in all of 2024. It held those gains Monday.

That considerable move came after Powell gave markets the all-clear signal by saying "the time has come to adjust policy," setting up the first Fed cut in more than four years.

An index tracking the wider banking sector (^BKX) is now up more than 18% on the year, in line with the performance of the S&P 500 (^GSPC).

Read more here.

Oil prices jumped sharply on Monday amid a halt in Libyan oil production and heightened tensions in the Middle East.

West Texas Intermediate (CL=F) rose as much as 3% to hover above $77 per barrel, while Brent (BZ=F), the international benchmark price, increased more than 2% to trade above $80 per barrel.

Over the weekend, Israel implemented an airstrike against Tehran-backed Hezbollah’s rocket launching stations in Lebanon, adding to fears of a broader conflict involving Iran breaking out in the region.

"The rise in tensions could bring an Iranian military response which, if seen, could slow global oil movements," Dennis Kissler, senior vice president at BOK Financial, wrote in a note to clients on Monday.

Read more here.

Gold prices neared record highs on Monday as investors flocked toward the precious metal amid heightened geopolitical tensions and the expectation of a Fed rate cut in September.

Gold futures (GC=F) for December delivery climbed above $2,552 per ounce.

The precious metal is up more than 23% year to date, making it one of the best-performing commodities of the year.

Tech stocks lagged on Monday, dragging on the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC).

Shares of Nvidia (NVDA) fell more than 1.5% by 12:30 p.m. ET, though they were off their session lows. Semiconductor Broadcom (AVGO) dropped more than 3% while EV maker Tesla (TSLA) also fell more than 2%.

Meanwhile, Materials (XLP), Utilities (XLU), and Energy (XLE) stocks gained, helping lift the Dow Jones Industrial Average (^DJI) higher.

Yahoo Finance's Pras Subramanian reports:

CARMEL, Calif. — McLaren CEO Michael Leiters believes that the British luxury supercar maker can succeed much like Ferrari has — but in a somewhat different way.

“We have one element in our brand, and it’s belonging," Leiters, who has been at the helm of McLaren for two years after eight years as Ferrari's chief technology officer, said in an interview with Yahoo Finance during Monterey Car Week. "We want to have people here. ... We speak with everybody — no arrogance.”

That could be read as a not-so-veiled swipe at Ferrari, given that the Italian luxury sports car manufacturer is notorious for secrecy, invite-only events, and only selling new vehicles to current or favored customers.

Read more here.

The markets diverged on Monday as the Dow Jones Industrial Average (^DJI) rose as much as over 200 points to touch a fresh intraday record.

The S&P 500 (^GSPC) erased earlier gains to fall 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) dropped more than 1%, led by a fall in shares of Nvidia (NVDA).

The AI chip heavyweight will report quarterly results this Wednesday after the market close.

EV giant Tesla (TSLA) also fell more than 3%, weighing on the S&P 500 and Nasdaq.

The Dow Jones Industrial Average (^DJI) rose more than 200 points, or 0.5%, on Monday morning, touching a new intraday record of 41,394.10.

Energy and Materials led the gains on Monday. Meanwhile, Technology stocks lagged, with the tech-heavy Nasdaq Composite (^IXIC) slipping as much as 0.7% while the S&P 500 (^GSPC) fell slightly.

The S&P 500 (^GSPC) rose 0.3% on Monday, inching closer to its July record highs. The index was less than 0.5% away from its July 16 all-time record close of 5,667.20.

The Dow Jones Industrial Average (^DJI) rose 0.3% on Monday. The tech-heavy Nasdaq Composite (^IXIC) drifted just above the flat line after opening slightly lower.

Stocks traded mixed on Monday as investors turned their focus to a busy week spearheaded by Nvidia's (NVDA) earnings report.

The S&P 500 (^GSPC) rose roughly 0.1%, while the Dow Jones Industrial Average (^DJI) added roughly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) slipped just below the flat line after the major indexes rallied on Friday.

The focus this week is firmly on Nvidia earnings. A lot is riding on those results since the AI chip heavyweight has been a major driver of the markets this year. Nvidia stock was little changed on Monday morning following a 4.5% gain on Friday.

Stocks neared fresh record highs on Friday after Fed Chair Jerome Powell made it crystal clear the central bank is ready to pivot to lowering rates in September. The benchmark S&P 500 index is less than 1% away from topping the all-time closing high set in July.