Stock market today: Wall Street drifts near records as Nvidia slides again

NEW YORK (AP) — U.S. stock indexes are drifting in mixed trading Monday, as Nvidia regresses a bit more after briefly climbing to Wall Street’s peak.

The S&P 500 was virtually unchanged in early trading, still near its record set last week. The Dow Jones Industrial Average was up 68 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.

Nvidia was dragging on the market and falling 2.4% toward a third straight loss. The chip company has been a big reason the S&P 500 has been setting records, as it shot 1,000% higher since the autumn of 2022 on nearly insatiable demand for its chips to power artificial-intelligence applications.

But the AI boom has been so frenzied that it’s raised worries about a possible bubble and too-high expectations among investors. Nvidia’s stock has been pulling back since briefly overtaking Microsoft to become Wall Street’s most valuable last week. It’s coming off its first losing week in the last nine.

Because Nvidia has become so massive in size, the moves that its stock makes carry extra weight on the S&P 500 and other indexes. It was the heaviest weight by far on the S&P 500 Monday.

Elsewhere on Wall Street, trading was mostly quiet.

RXO jumped 13.7% after it agreed to buy the Coyote Logistics freight brokerage business from UPS for nearly $1.03 billion. RKO said the deal will make it North America’s third-largest provider of brokered transportation.

UPS, which bought Coyote in 2015 for $1.8 billion, added 0.6%.

Under Armour dropped 2.7% in its first trading after saying it agreed to pay $434 million to settle charges raised by shareholders related to its accounting and sales practices. The shoe and athletic wear company denied any wrongdoing in the settlement, but it also agreed to separate the roles of chairman and CEO for at least three years.

GoDaddy slipped 0.5% in its first trading since getting promoted to the widely followed S&P 500 index of big U.S. stocks from the smaller S&P 400 index. KKR rose 0.4%, and CrowdStrike Holdings slipped 0.5% as they also joined GoDaddy in the S&P 500.

Such moves can drive a lot of purchases because many funds will switch their investments to mimic the S&P 500 index, or at least benchmark their performance against it.

In the bond market, Treasury yields were holding relatively steady. The yield on the 10-year Treasury edged down to 4.25% from 4.26% late Friday.

It’s been mostly falling since topping 4.70% in late April, which has relaxed the pressure on the stock market. Yields have been sinking on hopes that inflation is slowing enough to convince the Federal Reserve to cut its main interest rate later this year.

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The Fed has been keeping the federal funds rate at the highest level in more than 20 years, hoping to grind down on the economy enough to get inflation under control.

In stock markets abroad, indexes rose modestly in Europe after mostly falling in Asia.

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AP Writers Matt Ott and Zimo Zhong contributed.