S&P and Nasdaq turn lower and fall for third session

US stocks struggled to hold early gains and were on track for a third consecutive decline on Monday, with the S&P 500 down 0.4%, the Dow Jones hovering near the flatline, and the Nasdaq sliding about 0.9%, weighed down by losses in tech and consumer discretionary stocks.

S&P and Nasdaq turn lower and fall for third session

A significant pullback in several major tech names contributed to the broader market weakness, with Microsoft dropping around 1.9% to hit a 28-week low of $399.62 after news that the company had canceled some leases for US data center capacity. This move raised concerns about slowing demand for cloud services and data infrastructure, affecting investor sentiment.

Tech stock on the downside

Broadcom (-2.6%), Tesla (-2.2%), and Meta (-2%) were also in the red, reflecting broader pressure on the tech sector. Investors appeared increasingly cautious amid concerns about rising costs, regulatory scrutiny, and slowing growth, all of which could impact the profitability of these high-growth companies. The tech-heavy Nasdaq, which has been particularly sensitive to these developments, struggled to maintain momentum as the sector faced broad-based losses.

Apple shares rise by 1%

On the other hand, Apple shares rose about 1%, buoyed by the company’s announcement to invest $500 billion in the US over the next four years, which includes plans to hire 20,000 new workers. The move was seen as a positive sign for both the US economy and Apple's long-term growth prospects, especially as it positions itself as a key player in both technological innovation and job creation. This helped offset some of the bearish sentiment across other tech stocks, providing a bright spot in the otherwise subdued market.

Earnings season continues to hold the market’s attention

Meanwhile, earnings season continues to hold the market’s attention, with Nvidia set to release its quarterly results on Wednesday. The chipmaker's shares were down about 0.4%, reflecting cautious investor sentiment ahead of the earnings report. Expectations are high for Nvidia’s results, as the company has been a major beneficiary of the growing demand for AI chips and cloud computing infrastructure. However, any sign of slower growth or supply chain challenges could weigh on its stock and set the tone for the broader semiconductor sector. As the week progresses, traders will be closely watching for earnings updates from other key companies, with a focus on how rising costs, inflation, and global uncertainties are impacting corporate performance.