Wall Street divided as tech stocks lag behind, Nasdaq falls more than 1%

The three main US indexes ended the first session of the week mixed after volatile trading as US technology giants lost ground ahead of Nvidia's 2024 earnings report on Wednesday.

THE S&P 500 gave way 0.5 % for 5,983.25 points , after having struggled to stay above the 6,000 point barrier. technology-driven Nasdaq Composite fell 1.20 % to 19,286.92 points , while the Dow Jones industrials gained a slight 0.08 % to 43,461.21 points .

The market is waiting to see, from the semiconductor giant's results, whether the investment of millions in artificial intelligence is yielding returns, both for the companies themselves and for investors.

Adding to the uncertainty surrounding spending on technology and AI, investors have been reacting to news that Microsoft has canceled leases for data centers in the US, suggesting a potential oversupply of infrastructure in this area.

Investors are also waiting for data on the U.S. personal consumption expenditures index, the Federal Reserve's preferred gauge of inflation, due out on Friday. Economists expect the index to cool to its slowest pace since June.

"If Nvidia's earnings and inflation data are softer than expected, it could give the stock a boost," Clark Bellin of Bellwether Wealth told Bloomberg.

Towards the end of the session, the US President brought up tariffs again. Donald Trump confirmed that the 25% tariffs on Mexico and Canada will go ahead as previously planned, on March 4.

Among the main market movements, Apple led the gains of "megacaps" by rising 0.66%. Nvidia lost more than 3% and Microsoft fell more than 1%.

Meanwhile, Chinese giant Alibaba (listed in the US) fell 2% after promising to invest $53 billion in AI. The company was also targeted by Trump's offensives against China: a series of measures related to investment and trade against its biggest rival.

Starbucks managed to advance more than 1% after announcing measures to increase efficiency and revitalize the company. One of them consists of the dismissal of 1,100 administrative jobs.

Berkshire Hathaway added 4% after reporting solid results, driven by a sharp jump in insurance underwriting.