- Stocks struggled to find direction after a three-week rally, with a gloomy forecast from nvidia corp. weighing on tech shares and traders looking for clues on the pace of Fed rate hikes.
- The S&P 500 gave up gains of up to 1% earlier in the day, while the Nasdaq 100 underperformed after a surge that briefly lifted the tech-heavy index 20 percent above its June low. Nvidia fell nearly 6.5%, putting pressure on chipmakers. treasuries climbed.
- Rising growth risks have prompted earnings downgrades, and after recent data showed that GDP shrank for the second consecutive quarter, some strategists have warned that cuts will only get worse. Following Friday's massive jobs report, JPMorgan and Evercore ISI predicted larger US rate hikes this year, with Citigroup predicting a 1 percentage-point hike in September.
