![Wall Street opend mixed](https://img.etimg.com/thumb/msid-111263641,width-210,height-158,imgsize-196408,resizemode-75/wall-street-opend-mixed.jpg)
AI chip firm Nvidia soared 6%, recovering some of the steep losses it had notched in three consecutive declining sessions. At current levels, the stock is still 12% away from last week's record high.
"The Nvidia story is currently more of a technical one, and not necessarily fundamental. It could be a great stock in the long run, but investors just need to be cautious," said Cetera Investment Management's chief market strategist, Brian Klimke.
Arm Holdings, Broadcom and Applied Materials also gained 2%-4%, helping the Philadelphia SE semiconductor index rise 1.4% after its recent slide.
Megacaps including Alphabet and Meta Platforms rose 2% each, helping the S&P 500 communication services index gain 1.3%. Technology led sectoral gains, up 1.5%, recovering from a three-day slide.
The recent pullback in tech and tech-adjacent stocks had prompted investors to lap up lagging sectors, with utilities and energy enjoying strong gains on Monday.
"We've been calling for broadening to other segments for a while. Indexes are really concentrated within a few top holdings, so even though you've been hurt recently by these names doing so well, it's good to be diversified," Klimke added.
The Dow pulled back from a one-month high hit on Monday, while the small-cap Russell 2000 index also lost some steam.
The Dow Jones Transport Average also dropped 1.5% after recent gains. Index-heavyweight FedEx lost 1% ahead of its quarterly results after markets close.
Technology and other growth stocks have driven the S&P 500 and the Nasdaq to record highs this year, but the continued underperformance in the value-tilted Dow has raised some concerns over the sustainability of equity strength.
The most-anticipated event of the week is the personal consumption expenditures (PCE) price index - the Fed's preferred inflation gauge - on Friday.
Traders see 61% odds of a 25-basis-point rate cut in September, and are eyeing around two cuts by the year-end, according to LSEG's FedWatch data.
At 11:58 a.m. ET, the Dow Jones Industrial Average was down 292.73 points, or 0.74%, at 39,118.48, the S&P 500 was up 17.30 points, or 0.32%, at 5,465.17, and the Nasdaq Composite was up 211.11 points, or 1.21%, at 17,707.92.
Spirit AeroSystems slumped 5.3%. A report showed Boeing has offered to acquire the airplane fuselage maker in a deal funded mostly by stock that values its key supplier at about $35 per share. Boeing dropped 3%.
Cruise operator Carnival Corp gained 7.4% after raising its annual profit forecast for the second time this year.
Walmart fell 2.5% after its CFO flagged the second quarter as the "most challenging quarter" at the NYSE 2024 European Investor Conference in London.
Declining issues outnumbered advancers for a 2.05-to-1 ratio on the NYSE and for a 1.46-to-1 ratio on the Nasdaq.
The S&P index recorded 18 new 52-week highs and two new lows, while the Nasdaq recorded 32 new highs and 120 new lows.
Read More News on
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
Read More News on
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price