Wall St indexes mixed; Nvidia earnings, Fed policy in focus
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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 0.08%, S&P 500 up 0.10%, Nasdaq up 0.24%
Updated at 09:43 a.m. ET/1443 GMT
By Lisa Pauline Mattackal and Purvi Agarwal
Nov 18 (Reuters) - Wall Street's main indexes were mixed on Monday, as investors looked ahead to earnings from AI-chip leader Nvidia following a rout the previous week on apprehensions about Donald Trump's cabinet appointments and the central bank's policy path.
Results from Nvidia NVDA.O, which reports third-quarter earnings on Wednesday, will be crucial as investors assess if the euphoria around AI, responsiblefor much of markets' tech-driven rally this year, can be sustained. Its stock has nearly tripled in value this year.
Nvidia's shares fell 2.8%,after a report said its new AI chips were overheating in servers, weighing on the Information Technology sector .SPLRCT, which lost 0.3%.
"I'm optimistic that they're going to continue to beat, but... optimism has been so high on that particular name (Nvidia) that you can't help but see some potential for a bit of a selloff," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
Meanwhile, Consumer Discretionary .SPLRCD stocks gained 1.4% after Tesla TSLA.O jumped 7.2% following a report that members of Trump's transition team were seeking to ease U.S. rules for self-driving cars. The EV-maker's gains also boosted the tech-heavy Nasdaq.
Shares of Uber UBER.N and Lyft LYFT.O fell more than 4% each.
Most megacaps edged higher, with Alphabet GOOGL.O up 0.7% and Apple AAPL.O up 0.6%.
However, healthcare stocks such as UnitedHealth UNH.N and Amgen AMGN.O weighed on the Dow.
The Dow Jones Industrial Average .DJI fell 35.21 points, or 0.08%, to 43,409.78, the S&P 500 .SPX rose 5.59 points, or 0.10%, to 5,876.21 and the Nasdaq Composite .IXIC gained 44.44 points, or 0.24%, to 18,724.56.
Rising expectations that the FederalReserve will slowits policy easing paceand uncertainty over the impact of U.S. President-elect Donald 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.
"The market’s post-election rally tapped the brakes last week," said Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley, adding Nvidia’s earnings would likely dictate the market’s short-term direction.
With the key holiday shopping season set to begin, 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 someof the sharp gains that followedTrump's decisive victory, but Wall Street remains fairly well placed as 2024 winds down. The benchmark index has gained nearly 3% in November and about 23% year-to-date.
A host of Federal Reserve officials are slated to speakthis week and their comments will be followed closely after Chair Jerome Powell said the Fed was in no hurry to cut rates.
Traders are pricing in a 41.6% chance the Federal Reservewill keep interest rateson hold in December, according to the CME FedWatch.
CVS Health's CVS.N shares gained 2.7% 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 1.62-to-1 ratio on the NYSE, and by a 1.31-to-1 ratio on the Nasdaq.
The S&P 500 posted 12 new 52-week highs and eight new lows, while the Nasdaq Composite recorded 20 new highs and 105 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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