Wall Street Steady as Alphabet Jumps, Nvidia Falls/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks held steady Monday with the S&P 500 flat, despite major moves from tech giants Alphabet and Nvidia. Alphabet shares jumped after Berkshire Hathaway revealed a $4.34 billion stake, while Nvidia slid ahead of its earnings report. Investors now await key data, including Nvidia’s results and a delayed jobs report, to gauge market direction.
Market Movements: Quick Looks
- S&P 500 remained nearly flat, hovering just under record highs.
- Dow Jones dipped 55 points, while Nasdaq rose 0.1%.
- Alphabet gained 5% following news of a $4.34B investment by Berkshire Hathaway.
- Nvidia dropped 1.3%, continuing volatile swings ahead of its earnings.
- Aramark fell 4.2% after missing earnings expectations.
- Interest rate uncertainty grows, with doubts about a third 2025 rate cut.
- Delayed U.S. jobs report due Thursday, could sway Federal Reserve decisions.
- 10-year Treasury yield dipped slightly, holding near 4.13%.
- Tokyo markets slipped, while South Korea’s Kospi jumped 1.9% on tech strength.
Deep Look: Wall Street Mixed as Investors Await Nvidia Earnings, Jobs Report
NEW YORK — Wall Street remained in a holding pattern on Monday as investors looked ahead to a critical week packed with earnings reports and economic data. While the broader market stayed relatively flat, dramatic shifts among individual stocks revealed ongoing tensions in the market.
The S&P 500 was virtually unchanged, sitting just below its all-time high set in late October. The Dow Jones Industrial Average slipped by 55 points, or 0.1%, and the Nasdaq Composite edged up 0.1%, reflecting a market that appears calm on the surface but is experiencing significant churn below.
Alphabet Lifts Market With Berkshire-Backed Rally
The standout performer of the day was Alphabet, which surged 5% in its first trading session since Berkshire Hathaway disclosed a $4.34 billion stake. The investment from Warren Buffett’s conglomerate is a notable endorsement, especially as Alphabet and other large-cap tech names face questions over valuation amid the artificial intelligence boom.
Berkshire is known for its disciplined investment approach, often steering clear of overhyped assets. That philosophy resonated in a market increasingly worried about frothy stock prices — particularly in sectors tied to AI.
Nvidia Drops Again as Earnings Loom
Meanwhile, Nvidia shares slipped 1.3%, adding to recent volatility. The semiconductor giant — widely viewed as the flagship stock of the AI surge — has seen sharp swings in recent sessions, moving at least 1.8% in eight of the last ten trading days.
Despite Monday’s decline, Nvidia is still up nearly 40% year-to-date, following explosive growth in previous years. All eyes are now on its upcoming earnings report, set for Wednesday, which will provide critical insight into whether the company’s AI-fueled profits can justify its lofty valuation.
Should Nvidia underdeliver, it could cast doubt on one of the strongest narratives driving the current bull market: that AI will sustain enormous revenue growth for major tech firms.
Other Corporate Movers: Aramark Falls on Guidance
Aramark, the facilities and food service provider, saw its shares drop 4.2% after it reported earnings that fell short of Wall Street expectations. Although the company projected 20% to 25% growth in a key profit metric for the upcoming year, analysts had hoped for more aggressive guidance.
The disappointment highlights the precarious balance between investor expectations and corporate reality, particularly in an environment where even solid results may not be enough to boost stock prices.
Fed Rate Cut Outlook in Doubt
Markets are also grappling with growing uncertainty over the Federal Reserve’s next move. After multiple cuts earlier in 2025, investors had been expecting a third cut in December to support a slowing job market.
However, recent inflation readings remain above the Fed’s 2% target, leading some officials to urge caution. Complicating matters, the recent government shutdown delayed key economic reports, including labor market data.
Fed policymakers now appear more inclined to wait for further clarity, particularly with the September jobs report finally scheduled for release this Thursday.
The outcome of that report could tip the scales: strong jobs data may delay rate cuts, while weaker figures could raise economic concerns.
Outlook for 2026: Fewer “Free Lunches” From Fed
Looking forward, analysts expect the Fed to be less proactive in cutting rates next year unless the economy shows clear signs of distress.
“The Fed’s ‘free lunch’ is over,” said Barry Bannister, chief equity strategist at Stifel. He noted that markets may need to adjust to a slower pace of stimulus, which could weigh on valuations moving forward.
Global Markets: Asia and Europe Slip
Overseas, markets were broadly weaker:
- Japan’s Nikkei 225 dipped 0.1% after government data revealed a 1.8% annualized contraction in GDP for the July–September quarter.
- European indexes also slipped modestly, reflecting global caution.
- South Korea’s Kospi stood out, gaining 1.9% as tech stocks rallied.
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