Stocks Fall as Investors Eye Upcoming Earnings Reports

New York, NY — Stocks retreated on Monday as Wall Street managed to maintain its nerves amid declines in the technology sector, awaiting significant earnings releases this week. The Dow Jones Industrial Average lost 617 points, or 1.3%, while the S&P 500 and Nasdaq Composite fell 1.2% and 0.5%, respectively.

Key contributors to the decline included declines in major tech companies, notably Nvidia, which saw a 3% dip ahead of its third-quarter earnings report scheduled for Wednesday. Investors were concerned about the performance of AI-related stocks following warnings from financial strategists.

“It’ll be important for Nvidia to confirm that demand is still there,” said Baird investment strategist Ross Mayfield. “But unless they take it a step further, I think it will leave more questions regarding the return on investment for the firms buying these chips.”

Following Nvidia’s report, investors will look towards major retailers reporting earnings later this week, particularly as the holiday season approaches. “Consumer stocks will be super important for the market’s sentiment about this coming holiday season,” Mayfield added.

The Federal Reserve’s meeting minutes and the upcoming jobs report are also on investors’ radar as economic indicators hint at future policy decisions.

In contrast, shares of Alphabet, Google’s parent company, rose nearly 5% after Berkshire Hathaway disclosed a new stake worth over $4.3 billion in its quarterly filing. The market reacted positively, highlighting the continued value seen in AI companies despite recent fluctuations.

In related news, Micron Technology‘s stock was boosted by analysts who cited increased demand for computer memory technology, setting a price target of $300, which suggests an increase from the current levels. The expectation is tied to rising AI accelerator production.

Overall, despite pressures from technology stocks, analysts remain optimistic about potential market rebounds in the weeks ahead, as year-end rallies have historically been common.