Wall Street Highlights: Tech Leads S&P 500, Nasdaq Lower As Nvidia Earnings, Jackson Hole Loom

A series of data releases will begin with consumer confidence numbers for August on Tuesday, followed by the personal consumption expenditures price index Wednesday and initial jobless claims Thursday. The University of Michigan's consumer sentiment survey rounds out the week on Friday.

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In addition, the Jackson Hole Economic Symposium starts at the end of the week. Federal Reserve Chairman Kevin Warsh will have an opportunity to clarify his views on how the central bank should react to stubborn inflation when he speaks at the annual gathering on Friday.

Warsh has said he wants to use the speech to frame "big questions" facing the Fed, though Wells Fargo Investment Institute's Doug Beath noted that "scant details" have been given on bringing inflation to the central bank's 2% target.

"Markets will be demanding significantly more details compared to the July FOMC meeting post conference, which led to a sharp drop in equities with diminished expectations of a September rate hike," Beath said.

Treasuries gained as CNBC reported the Treasury Department could use some of its cash pile to fund buybacks of higher-yielding older securities in a bid to tackle rising borrowing costs.

However, Treasury Secretary Scott Bessent, stopped short of giving further signals on revamping US debt management in a speech on Monday following the report.

"We haven't bought a single bond yet," Bessent said when asked in a press conference whether he's going to soon increase the buybacks.

Earlier, Citadel Securities said the Treasury's efforts to restrain long-term borrowing costs through bond buybacks amounted to "financial repression" that risks weakening the dollar and fueling inflation.

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Nvidia Earnings

Nvidia shares ended the session 2.9% lower, extending its longest losing streak since September 2022. The company will report earnings on Wednesday after the market closes.

The company's results have become an important part of earnings seasons, with investors seeing it as a way to check the temperature on the AI trade, which has become shaky in recent months.

"A strong quarter is already expected, so simply beating forecasts may not be enough," said Charu Chanana, chief investment strategist at Saxo. "The bigger question is whether Nvidia can beat by enough and guide strongly enough to keep earnings expectations moving higher."

Nvidia notified customers about AI-related price hikes. The price increases will go into effect on systems shipped early next year and will impact systems including those with the flagship Vera Rubin and Grace Blackwell chips, according to people familiar with the process.

"The reality is we are seeing a memory supercycle take place, and that's the word all around Korea and that's why Nvidia will need to pass that on to their customers," said Dan Ives, senior managing director at Yorkville Ives & Co., on Bloomberg TV.