Nasdaq exceeds 17,000 on boost from Nvidia; inflation data awaited
US moves towards faster stock settlement
Apple gains on strong iPhone sales in China
Indexes: Dow down 0.7%, S&P 500 down 0.1%, Nasdaq up 0.5%
Updates to 2:15 p.m. ET
By Abigail Summerville
NEW YORK, May 28 (Reuters) -The Nasdaq rose pastthe 17,000 level on Tuesday forthe first time everas AI leader Nvidia hit a record high, while investors awaited U.S. inflation data this weekthat could sway expectations for Federal Reserve rate cuts.
The Dow and S&P 500 slipped, with the S&P 500 pressured by declines in healthcare <.SPXHC>, industrials .SPLRCI and financials .SPSY.
The U.S. core Personal Consumption Expenditures Price Index report for April is due later this week. The Fed's preferred inflation barometer is expected to hold steady on a monthly basis.
Nvidia shares gained more than 6% and lifted other chip stocks, with the Philadelphia Semiconductor Index .SOX up 1.7% as traders returned from a holiday-extended weekend.
"In terms of today’s price action, it’s all about technology and the winners continue to be the winners, specifically Nvidia. Today's tape is a function of positive stories having some stock specific impact, but overall, as you can see from the Dow being down around 200 points, it’s a generally sloppy overall market session," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
The Dow Jones Industrial Average .DJI fell 278.04 points, or 0.71%, to 38,791.55, the S&P 500 .SPX lost 4.37 points, or 0.08%, to 5,300.35 and the Nasdaq Composite .IXIC gained 81.68 points, or 0.48%, to 17,002.47.
Wall Street has been hitting records recently as investors betthe U.S. centralbank could kick off interest-rate cuts this year.
Expectations for the timing of rate cuts have see-sawed, with policymakers wary as data still reflects sticky inflation.
Odds of a rate reduction of at least 25 basis points stand above the 50% mark only for the months of November and December this year, according to the CME FedWatch Tool. The odds of a September rate cut fell to around 46% from over 50% a week ago.
The retail sector will also be in focus this week, with several retailers like Dollar General DG.N, Advance Auto Parts AAP.N and Best Buy BBY.N reporting earnings.
U.S. trading moves to a shorter settlement on Tuesday, which regulators hope will reduce risk and improve efficiency, but is expected to temporarily increase transaction failures for investors.
Hess HES.N shareholders approved the $53 billion merger with Chevron CVX.N. Hess shares were last down 0.9%, while Chevron shares were up 0.5% and Exxon Mobil XOM.N shares were up 0.8%.
Apple AAPL.O shares rose 0.2% after iPhone sales in China surged 52% in April from a year earlier, Reuters calculations based on industry data showed.
GameStop GME.N shot up 21.5%. Late on Friday, the videogame retailer said it had raised $933 million by selling 45 million shares as part of an"at-the-market" offering.
Declining issues outnumbered advancers by a 1.6-to-1 ratio on the NYSEand by a 1.38-to-1 ratioon the Nasdaq.
The S&P 500 posted 23 new 52-week highs and nine newlows, while the Nasdaq Composite recorded 82 new highs and 87 new lows.
Reporting by Abigail Summerville in New York; Editing by Pooja Desai and David Gregorio
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