Mixed Markets: Tech Stocks Tumble, Oil Firms Rise Amidst Geopolitical Tensions

The S&P 500 and Nasdaq experienced declines due to AI-favorite Nvidia's slump, leading a broader tech sector drop. Oil companies saw gains amid Middle East tensions, driving crude prices up. The Dow remained relatively stable, buoyed by financials and consumer staples. Markets anticipate significant earnings and a potential interest rate cut by the Federal Reserve.

New York (Reuters) - The S&P 500 and Nasdaq dropped on Monday as AI-favorite Nvidia led declines in the tech sector, falling 2.3% ahead of its earnings report. Meanwhile, oil companies gained on fears of supply disruptions due to Middle East tensions, lifting the Energy sector by 0.6%.

While the Dow Jones Industrial Average was up marginally by 0.02%, supported by gains in financial and consumer staples stocks, the Nasdaq fell by 0.94%. Nvidia's performance weighed heavily on the Philadelphia SE Semiconductor index, which declined by 2.5%.

Other major tech names like Tesla, Meta, and Apple also experienced dips as investors awaited a key inflation report. Market players are increasingly betting on a Federal Reserve interest-rate cut in September, with odds shifting between a 25-basis-point and a 50-basis-point reduction.

(With inputs from agencies.)