This article first appeared on GuruFocus.
The Nasdaq Composite slipped on Tuesday as traders stepped back from Monday’s strong rebound, with weakness in Nvidia (NASDAQ:NVDA) weighing on the tech sector.
The index eased about 1%, while the S&P 500 was little changed. The Dow Jones Industrial Average added roughly 1%, helped by gains in select industrial names.
Nvidia dropped more than 5% after a report said Meta (NASDAQ:META) may direct part of its future data-center spending toward Alphabet’s (NASDAQ:GOOGL) custom AI chips. Alphabet edged higher on the development and extended Monday’s rally, when it hit a record close. Broadcom (AVGO) also advanced after a sharp jump in the prior session.
Monday’s surge had briefly eased concerns following last week’s pullback. Still, major indexes remain set for monthly declines, with the Nasdaq tracking a fall of about 4% for November and the S&P 500 down around 2%.
Investors continued to watch rate-cut expectations as remarks from Federal Reserve officials suggested policy easing could be possible in the coming months. Market-based pricing shows traders leaning toward a quarter-point trim at the December meeting, according to futures data.
