U.S. Equities Slump as Investors Await Nvidia Earnings; Crypto Markets Watch for Spillover Effects

U.S. equities opened the week under pressure, with the Dow Jones Industrial Average dropping 349 points to 45,282.47 after reaching record highs last week. The S&P 500 and Nasdaq Composite followed suit, declining 0.43% and 0.22% respectively as markets braced for Nvidia's Q2 earnings report—a potential catalyst for broader risk assets.

Nvidia's $4.39 trillion market cap makes its results particularly consequential, with disappointing figures likely to reverberate across tech stocks and correlated crypto assets. The chipmaker's performance is viewed as a bellwether for AI-related investments, a sector increasingly intertwined with blockchain infrastructure projects.

Federal Reserve Chair Jerome Powell's recent hints at impending rate cuts failed to sustain last week's rally, with American Express, Merck, and Boeing leading the Dow's retreat. This risk-off sentiment could drive capital toward alternative stores of value, including Bitcoin and major altcoins, though trading volumes remain subdued ahead of Nvidia's disclosure.