S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results

Investing.com-- The S&P 500 slipped Monday, but downside momentum was stifled by a climb in Nvidia ahead of its quarterly earnings due later this week. 

At 2:50 p.m. ET (18:50 GMT), the Dow Jones Industrial Average dropped 271 points, or 0.6%, the S&P 500 index was down 0.2%, and the NASDAQ Composite added 0.1%.

Intel, Nvidia leads tech higher ahead of key week for chips 

Intel Corporation (NASDAQ:INTC) and NVIDIA Corporation (NASDAQ:NVDA) lead the broader tech market higher ahead of Nvidia’s quarterly results due Wednesday after the market close. 

Ahead of Nvidia’s results, Wall Street is optimistic that the chipmaker will beat expectations and offer upbeat guidance amid solid demand trends and a rebound a China-related revenues after President Trump relaxed a ban on H20 chip sales to Beijing.    

"Net, we are lifting our modeled numbers (FQ2 and out quarters) to mirror solid demand trends as well as an expectation of at least some rebound in China related revenues," Wedbush said in a recent note ahead of the Nvidia’s results. 

Intel, meanwhile, was also in the ascendency despite warning that its non-U.S. business, which accounts for the bulk of revenue, could be "adversely impacted" by government’s move to a take a 9.9% stake in the chipmaker. 

"Having the US Government as a significant stockholder of the Company could subject the Company to additional regulations, obligations or restrictions, such as foreign subsidy laws or otherwise, in other countries," Intel said in a regulatory filing Monday. 

Apple Inc (NASDAQ:AAPL), meanwhile, was up slightly after Bloomberg reported that tech giant is launching a three-year plan to overhaul the hardware and software design of the iPhone.

Deal activity picks up as Keurig Dr Pepper buys JDE Peet’s in $18B deal, Thoma Bravo buys Verint Systems

Keurig Dr Pepper Inc (NASDAQ:KDP) announced Monday it agreed to buy dutch coffee maker JDE Peet’s for $18 billion. Following the merger, the companies plan to split in two - with one focus on coffee and the other on cold beverages. 

Private equity firm Thoma Bravo said it would acquire Verint Systems Inc (NASDAQ:VRNT) in a $2 billion deal. The PE firm is continuing to deepen its software portfolio following a string of acquisitions including its $10.6B deal to buy Boeing’s navigation unit Jeppesen.  

Treasury yields continue to rise after Powell open door to September rate; fresh inflation data eyed 

Treasury yields added to gains from last week as investors continued to price in a September rate cut after Federal Reserve chairman Jerome Powell signaled in its Jackson Hole address on Friday that a rate cut could be coming amid concerns about the labor market. 

Powell noted that "there is less risk of a lasting inflation dynamic from tariffs since the labor market is not particularly tight and faces downside risk," Morgan Stanley said in a Monday note. "This has lowered the bar for a rate cut in September," it added.

Further clues on a rate-cut are likely to emerge this week amid a slew of Fed speakers as well as fresh inflation data due Friday.