S&P 500 slips as Nvidia rally fizzles By Investing.com

Investing.com – The S&P 500 slipped on Wednesday as Nvidia’s rally faded, keeping a lid on tech stocks despite a sharp drop in Treasury yields amid growing bets on a jumbo Fed rate cut later this month.

At 4:00 pm EST (2000 GMT), it gained 38 points, or 0.1%, was down 0.2% and was down 0.3%.

Wall Street’s main indexes suffered a sharp sell-off on Tuesday as US investors returned from the Labor Day holiday amid disappointing data on manufacturing activity that fueled concerns about the economic outlook.

Treasury yields fall amid labor market concerns

The two-year Treasury, which is sensitive to Fed policy, fell more than 12 basis points to 3.766 percent after job openings fell more than expected.

fell more than expected in July to 7.67 million from a downwardly revised 7.91 million in June, pushing the ratio of job vacancies to the unemployed to 1.07 to 1, below pre-pandemic levels.

“Today’s report adds to the body of evidence that the labor market is not only weaker than before the pandemic, but continues to cool, and potentially now at a faster pace,” Citi analysts said in a note .

Market participants are holding their breath for August US futures, which are expected to play a key role in the Federal Reserve’s decision on whether to implement a rate cut of 25 basis points or 50 basis points on September 18.

Nvidia’s rebound is fading

Shares of Nvidia (NASDAQ: ) closed 1% lower, weighing on the broader technology sector, after an intraday rally ran out of steam.

Bloomberg News reported that the company has been subpoenaed by the US Department of Justice as part of an in-depth investigation into its dominance of the artificial intelligence chip market.

Corporate earnings continue

In terms of individual stock moves, Zscaler (NASDAQ: ) fell 18% after its weaker-than-expected guidance offset quarterly results that beat Wall Street estimates.

Shares of Asana (NYSE: ) fell 6% after reporting a challenging quarter and announcing a CFO change. Pagerduty (NYSE: ) closed 1% lower after cutting its revenue forecast.

On a positive note, shares of Clover Health Investments Corp (NASDAQ: ) rose 14% as its counterparty unit secured a contract from the Iowa Clinic and Gitlab (NASDAQ: ) stock surged 21% on strong results and a high forecast.

(Senad Karaahmetovic and Scott Kanowsky contributed to this article.)