Wall Street indexes end lower; investors brace for jobs data, Nvidia results

U.S. stocks tumbled on Monday with the Dow down 557.24 points (1.18%) to 46,590.24, the S&P 500 off 61.70 points (0.92%) to 6,672.41 and the Nasdaq down 192.51 points (0.84%) to 22,708.08, as the S&P and Nasdaq closed below their 50-day moving averages for the first time since late April and the Dow fell below that level for the first time since Oct. 10. Losses accelerated in afternoon trading as investors braced for key earnings — notably Nvidia after the bell on Wednesday and retailers including Home Depot, Walmart and Target this week — and a long-delayed U.S. jobs report due Thursday, amid concerns that AI-driven valuations may be stretched. Notable movers included Nvidia, which was the biggest drag after sliding 1.9%, Alphabet, which rose 3.1% after Berkshire revealed a $4.3 billion stake, and downgrades that hit Dell and HPE; Morgan Stanley meanwhile said it expects U.S. equities to outperform next year and favors stocks over credit and government bonds.

Analysis

U.S. equities sold off sharply on Monday with the Dow falling 557.24 points (1.18%) to 46,590.24, the S&P 500 down 61.70 points (0.92%) to 6,672.41 and the Nasdaq off 192.51 points (0.84%) to 22,708.08, marking the first close below the 50-day moving average for the S&P and Nasdaq since April 30 and for the Dow since Oct. 10. Losses accelerated in afternoon trade as all three indexes traded beneath the 50-day moving average, despite the S&P remaining up 13.4% year-to-date, signaling a near-term technical consolidation. Near-term catalysts that pressured markets include Nvidia's impending earnings (due Wednesday after the bell) — its shares slid 1.9% Monday — and a slate of retailer reports (Walmart, Home Depot and Target) with Home Depot ending down 1.2% ahead of Tuesday's print, while a delayed September jobs report is due Thursday. Market internals were weak: NYSE decliners outnumbered advancers 4.03-to-1 and Nasdaq decliners 3.06-to-1 on volume of 19.06 billion versus a ~20 billion 20-day average; stock-specific moves included Alphabet +3.1% after Berkshire disclosed a $4.3 billion stake and steep drops in Dell (-8.4%) and HPE (-7%) after Morgan Stanley downgrades, even as Morgan Stanley projects U.S. equities to outperform next year.

Key Decisions for Investors

• Reduce near-term exposure to high-beta and AI-linked names and consider hedges (put options or short-dated collars) into Nvidia earnings and the September jobs print
• Trim or set disciplined stop-losses on positions that have closed below their 50-day moving averages and avoid adding size until either a technical reclamation or earnings clarity
• Monitor retail earnings (WMT, HD, TGT) and the jobs report for signs of consumer weakening and reweight cyclical/consumer discretionary exposure accordingly
• Evaluate tactical opportunities in stocks showing fundamental support after sell-offs (for example Alphabet on Berkshire's stake) but time entries after earnings and macro prints to avoid headline-driven volatility