S&P500: Alphabet Pops but US Indices Stall as Traders Await Nvidia Forecast

Stocks Open Week Flat as Traders Await Nvidia Earnings and Jobs Data

U.S. equity indexes traded mostly sideways on Monday, with investors reluctant to make bold moves ahead of this week’s high-stakes events, including Nvidia’s earnings release and the September jobs report.

The S&P 500 slipped 0.13%, the Nasdaq Composite edged lower by 0.11%, and the Dow Jones Industrial Average fell 0.18%.

The three major indexes opened lower and spent most of the session oscillating near the flatline as traders took a cautious approach after last week’s gains. Market action remained subdued despite strength in select mega-cap names.

What Drove Alphabet’s Surge?

Alphabet Class A shares jumped over 5% after Berkshire Hathaway disclosed a stake in the tech giant, marking a rare move into the artificial intelligence trade. While Warren Buffett is unlikely to have personally made the call, the endorsement from one of the world’s most respected investment firms bolstered confidence in Alphabet’s long-term value, even after a strong YTD rally. Class C shares gained a similar 5% on the session.

Other top gainers included Tesla (+3.03%), Centene (+2.97%), and Constellation Brands (+2.56%), all benefiting from renewed interest in defensive or growth-oriented plays as investors rotated selectively.

Are Concerns Growing Around Nvidia?

Nvidia slipped more than 1% as traders braced for its third-quarter results due after the bell Wednesday. While analysts widely expect a strong report, there’s growing concern that continued blowout guidance could raise red flags about spending excesses in the AI sector.

“The results may not surprise anyone,” noted Montis Financial’s Dennis Follmer, “but they could reinforce concerns about unsustainable AI-related capex, even for a dominant name like Nvidia.” The stock remains under pressure along with other semis as valuation concerns linger.

Which Sectors Lagged the Broader Market?

Energy (-0.74%), Technology (-0.71%), and Consumer Discretionary (-0.42%) underperformed, dragging on the broader indexes. Financials, Materials, and Industrials also closed in the red. In contrast, Communication Services rallied 2.54%, helped by Alphabet’s gains, while Utilities and Health Care posted modest advances.

Decliners included Dell (-6.97%), Hewlett Packard Enterprise (-5.78%), and Coinbase (-5.36%) as traders rotated out of high-beta and cyclicals ahead of major catalysts.

What’s the Market Watching Next?

Traders are zeroed in on two key events: Nvidia’s earnings on Wednesday and the September nonfarm payrolls report due Thursday. The jobs data, the first since the government shutdown ended, could heavily influence expectations for a possible December rate cut.

“A strong or weak number could tilt the balance,” Follmer added. “With the FOMC currently split, the Fed may lean toward holding rates steady to assess new data.”

Short-term outlook remains cautious as traders seek clarity from earnings and labor data before resuming directional bets.

More Information in our Economic Calendar.