The broader market was muted on Monday following the previous session's massive rally, as market participants looked ahead towards Nvidia's (NASDAQ: NVDA) highly-anticipated earnings report due out later this week.
The S&P 500 Index (NYSE: SPY) slipped about 0.4% on Monday after coming within three points of its all-time high on Friday. The Dow Jones Industrial Average (NYSE: DIA) similarly fell over 300 points on Monday after setting a fresh record closing high last week as a speech from Federal Reserve Chair Jerome Powell at the central bank's annual Jackson Hole Symposium signaled policymakers may be ready to issue an interest rate cut in September.
The tech-heavy Nasdaq Composite (NASDAQ: QQQ) initially rose on Monday, as gains from Nvidia and Intel (NASDAQ: INTC) helped lift the index higher, but ultimately closed down 0.2%.
Intel remained in the headlines, with shares extending gains from the previous session, on Monday after President Donald Trump praised the the nearly 10% stake the U.S. government made into the chipmaker last week and said he will make deals like that "all day long."
"I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to the USA. Why are 'stupid' people unhappy with that? I will make deals like that for our Country all day long," the president wrote in a post on Truth Social, adding that he will "help those companies that make such lucrative deals," with his administration.
The deal gives the Department of Commerce up to 433.3 million shares of the company, with the purchase largely funded by money awarded to Intel under former President Joe Biden's CHIPS Act.
Intel disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) on Monday that the U.S. government's stake has the potential "adverse reactions" and could harm its international sales -- which accounted for 76% of its revenue last year.
"There could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors," Intel wrote in the filing. "There may also be litigation related to the transaction or otherwise and increased public or political scrutiny with respect to the Company."
Furniture stocks including Wayfair (NYSE: W), RH (NYSE: RH), and Williams-Sonoma (NYSE: WSM) all declined on Monday after Trump said late Friday that the U.S. will conduct an investigation on how to tariff furniture imports into the country. The president did not provide details on whether the new tariff rates will exceed the duties already in place on the country of origin.
"With the next 50 days, that Investigation will be completed, and Furniture coming in from other Countries into the United States will be Tariffed at a Rate yet to be determined," the president wrote on TruthSocial, adding that this action "will bring Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union."
Looking ahead, market participants will continue to trade cautiously ahead of the Fed's policy meeting next month, with August's jobs report set to be a key factor as to whether or not the central bank cuts interest rates.
UBS Ulrike Hoffmann-Burchardi wrote in Monday note that the firm expects the Fed to begin easing interest rates unless the jobs data and other inflation readings come in hotter-than-expected ahead of the meeting.
"We expect Powell to advocate for easing at the September meeting unless incoming data, such as a strong August labor report or higher-than-expected inflation, provide reason to stay on hold," Hoffmann-Burchardi, CIO Americas and Global Head of Equities at UBS Global Wealth Management, wrote, adding that the firm anticipates "four quarter-point rate cuts through January 2026."
Artificial intelligence darling Nvidia is also scheduled to deliver the results of its third-quarter on Wednesday, joined this week by other companies such as CrowdStrike (NASDAQ: CRWD), Snowflake (NYSE: SNOW), Dell (NYSE: DELL), Marvell Technology (NASDAQ: MRVL), Affirm Holdings (NASDAQ: AFRM) and Ulta Beauty (NASDAQ: ULTA).