S&P 500, Nasdaq gain as investors await Nvidia earnings; Tesla jumps
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Nvidia falls after report Blackwell chips overheating
Tesla jumps after report Trump team's could ease rules
CVS Health gains on new board appointments in Glenview deal
Indexes: Dow down 0.03%, S&P 500 up 0.43%, Nasdaq up 0.67%
Updated at 11:58 a.m. ET/ 1658 GMT
By Lisa Pauline Mattackal and Purvi Agarwal
Nov 18 (Reuters) - The S&P 500 and the Nasdaq rebounded on Monday, recovering some lossesas Tesla TSLA.O jumped on the prospect of favorable policy changes from the incoming Trump administration and investors awaited quarterly results from AI leader Nvidia.
Earningsfrom Nvidia NVDA.O, which reports third-quarter earnings on Wednesday, will be crucial as investors assess if the euphoria around AI, which drovemuch of markets' rally this year, can be sustained.
The chip designer, which powered 20% of the S&P 500's return over the past year, is expected to drive nearly 25% of its EPS growth in the third quarter, according to BofA Global Research. Nvidia's shares dipped 1.5% after a report said its new AI chips were overheating in servers.
"What we got last week was a hangover from the post-election rally. We've been able to rally back a little (after the selloff), but it's kind of slow," said Jay Woods, chief global strategist, Freedom Capital Markets.
"If we see anything that leads to downward pressure pricewise (from Nvidia), it could drag the whole Semiconductor index and that doesn't bode well," Woods said.
Consumer Discretionary .SPLRCD stocks gained 1.2% after Tesla TSLA.O jumped 6.5% following a report that members of President-elect Donald Trump'stransition team were seeking to ease U.S. rules for self-driving cars.
Shares of Uber UBER.N and Lyft LYFT.O fell 7% and 4%, respectively.
Information Technology stocks.SPLRCT were up 0.2%, buoyed by Microsoft MSFT.O, which edged up 0.2%, and Apple AAPL.O, which rose 1.5%. Gains in these stocks also boosted the Nasdaq.
The Dow Jones Industrial Average .DJI fell 14.27 points, or 0.03%, to 43,430.72, the S&P 500 .SPX rose 24.57 points, or 0.43%, to 5,895.64 and the Nasdaq Composite .IXIC gained 124.83 points, or 0.67%, to 18,805.96.
Rising expectations that the FederalReserve will slow the pace of policy easingand uncertainty over the impact of Trump's cabinet appointments led to theS&P 500 .SPX and the Nasdaq .IXIC logging theirworst weekly losses in more than two months last week.
With the key holiday shopping season set to commence, results from major retailers including Walmart WMT.N, Lowe's Companies LOW.N and Target TGT.N will be closely watched this weekto gauge the strength of the U.S. consumer.
Stock indexes have shed some of the sharp gains that followed Trump's decisive victory, but Wall Street remains fairly well placed as 2024 winds down. The benchmark index has gained about 23% year-to-date.
The NAHB Housing Market index rose to 46, beating an estimate of 43, while anindex of housing stocks .HGX edged 0.2% higher on the day.
Traders are pricing in a 41.3% chance the Fed will keep interest rateson hold in December, according to the CME's FedWatch.
CVS Health's CVS.N shares gained 5.5% after the health insurer said it would add four new members to its board in an agreement with Glenview Capital Management.
Advancing issues outnumbered decliners by a 2.17-to-1 ratio on the NYSE, and by a 1.28-to-1 ratio on the Nasdaq.
The S&P 500 posted 24 new 52-week highs and 12 new lows, while the Nasdaq Composite recorded 49 new highs and 202 new lows.
Nvidia is beating revenue estimates by smaller margins https://reut.rs/4exccl1
Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Pooja Desai
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