Stock market today: S&P 500 falls as Nvidia slides ahead of earnings

Investing.com - The S&P 500 fell Monday, driven by an Nvidia-led decline in fall in tech ahead of earnings from chipmaking giant.

At 4:00 p.m. ET (20:00 GMT), the benchmark S&P 500 fell 0.5%, the tech-heavy Nasdaq Composite fell 1.2%, and the 30-stock Dow Jones Industrial Average rose 33 points, or 0.1%. 

Nvidia leads tech lower ahead of quarterly results this week

Nvidia (NASDAQ:NVDA) fell more than 3% leading the broader slump in tech as ahead of its earnings slated for this week. The chipmaking giant’s quarterly results, due Wednesday after the market closes, are expected to serve as a barometer of AI appetite.

"We expect another robust performance and "clear beat and raise special" this week from Nvidia that should calm the nerves of investors as Jensen lays out the massive demand drivers from Blackwell and AI Capex in the field fueling this 4th Industrial Revolution," Wedbush said in a recent note.

Apple Inc (NASDAQ:AAPL), however, sidestepped the selloff to end slightly higher after announcing plans to invest $500 billion in the U.S. over the next four years to boost AI, silicon engineering, and advanced manufacturing.

Budget framework, inflation, GDP in focus

Markets will also be keeping tabs this week on developments around a budget framework laid out by Republicans in both the House of Representatives and Senate. House Republicans are reportedly set to move ahead with a vote early this week on their plan for one large budget bill, according to Roll Call.

"[O]ur main concern has been and still is Washington, specifically that the prolonged period [of] extreme uncertainty at a time of elevated valuations will (at the least) place a lid on the market and prevent further gains," analysts at Vital Knowledge wrote in a note to clients.

"It looks like there won’t be clarity on a number of Washington-related fronts until at least the summer, which only exacerbates the cautious outlook."

On the economic front, the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, and the second estimate for fourth quarter gross domestic product, set to be released later this week, will likely stoke fresh clues on the Fed’s policy path ahead.

Alibaba ’s AI spending plans; Berkshire slips despite record profit; Nike in analyst upgrade

In corporate news, Alibaba Group (NYSE:BABA) fell 10% after announcing plans on Monday to invest 380 billion yuan ($52.4 billion) over the next three years to boost its cloud computing and AI infrastructure, marking its largest technology investment to date.

The move underscores Alibaba’s ambition to lead in AI-driven growth and solidify its position as a global cloud provider, the company said.

Elsewhere, Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) rose 4% despite reporting a third-straight all-time peak in full-year profits and lifted its cash stake up to $334.2 billion. The 94-year-old Buffett also told shareholders that "it won’t be long" before Vice Chairman Greg Abel takes over at the helm of the investment conglomerate.

Microsoft (NASDAQ:MSFT) slipped 1% the tech giant started to cancel leases for a significant amount of data capacity in the U.S., in a sign that the tech titan may be responding to concerns surrounding possible overspending on its AI capabilities, according to analysts at TD Cowen. Shares were lower.

Nike ’s (NYSE:NKE) stock price climbed 5% after the athletic apparel firm’s rating was upgraded to "buy" from "hold" at Jefferies, with the analysts suggesting the company is well-positioned for a rebound in performance over the next two years.

(Scott Kanowsky contributed to this report.)