(Bloomberg) — Some of the world’s largest technology companies dragged down stocks after a rally that put the market on the brink of its all-time highs, with Nvidia Corp.’s earnings due in just a few days.
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A gauge of the “Magnificent Seven” megacaps slid 1.2%. While more than half of the shares in the S&P 500 gained, the US equity benchmark edged lower on Monday — a consequence of weakness in the tech giants that dominate it. Small caps finished little changed after climbing almost 1% on hopes the bull market will broaden out of big tech as Jerome Powell signaled Friday the Fed will cut rates soon. The Dow Jones Industrial Average rose to a record.
“Powell sealed the deal for a September cut at Jackson Hole — leaving intact our thesis for continued broadening/rotation,” said Ohsung Kwon at Bank of America Corp. “But don’t sleep on Nvidia earnings, a consistent driver of S&P returns and…
