US Stocks Retreat as Nvidia Earnings Loom, Tech Sector in Focus

Wall Street's rally paused as the Dow Jones Industrial Average slid from its record high, shedding over 300 points. The S&P 500 and Nasdaq Composite followed suit, dipping 0.4% and 0.2% respectively. Investors shifted focus to Nvidia's impending earnings report—a bellwether for both the chipmaker and the broader tech sector.

Nvidia, now the S&P 500's most valuable stock, carries the weight of AI-driven market optimism. Analysts project $1.01 EPS on $46.13 billion revenue ahead of Wednesday's report. The stock's 32% YTD surge and near-record valuation reflect unrelenting demand for AI infrastructure.

The pullback follows last week's Fed-fueled surge, where Powell's September rate-cut hints propelled the Dow 800 points higher. Now, traders scrutinize whether tech's dominance will persist or trigger sector rotation—especially with Dell and Marvell earnings pending.