Wall Street drifts as Alphabet rallies and Nvidia sinks

NEW YORK AP The U S stock domain is holding steadier on Monday following two weeks of sharp swings but that s masking sharp moves underneath the surface ahead of big-time reports coming later in the week The S P was virtually unchanged and sitting just a bit below its all-time high set late last month The Dow Jones Industrial Average was down points or as of a m Eastern time while the Nasdaq composite was higher Alphabet was the strongest force pushing upward on the sphere It rose in the first chance for traders to buy its stock since Berkshire Hathaway stated it built a billion ownership stake in Google s parent company Berkshire Hathaway run by famed investor Warren Buffett is notorious for trying to buy stocks only when they look like good values while avoiding anything that looks too expensive Such discipline has become a much hotter topic on Wall Street in recent days Critics have been warning that the U S stock industry could be primed for a drop because of how high prices have shot since April leaving them looking too expensive Critics point in particular to stocks swept up in the AI mania which have been surging at spectacular speeds for years The company at the center of the frenzy Nvidia fell another Monday following swings of at least in eight of the last days It s nevertheless still up nearly for the year so far after it doubled in price in four of the last five years That has Wall Street s spotlight on Wednesday when Nvidia will document how much profit it made during the summer AI stocks have surged as much as they have because of expectations that they ll produce huge advancement in profits If they fail to meet analysts expectations that would undercut one of the big assumptions that s driven the U S stock domain to records Such high expectations extend beyond tech stocks even if they are toughest for AI darlings Aramark fell after the company which offers food and facilities management for schools national parks and convention centers disclosed a profit for the latest quarter that fell short of analysts expectations It also explained it expects an underlying measure of profit to grow between and this upcoming year While relatively strong that was less than what analysts had been forecasting Another source of probable disappointment for Wall Street is what the Federal Reserve does with interest rates The expectation had been that the Fed would keep cutting interest rates in hopes of shoring up the slowing job field Wall Street loves lower rates because they can give the market system and prices for investments a boost But questions are rising about whether a third cut for the year will veritably come at the Fed s next meeting in December something that traders had earlier seen as very likely The downside of lower interest rates is that they can make inflation worse and inflation has stubbornly remained above the Fed s target Fed leaders have pointed to the U S regime s shutdown which delayed the release of updates on the job field and other signals about the economic activity With less information and less certainty about how things are going certain Fed representatives have suggested it may be better just to wait in December to get more clarity Now that the shutdown is over the executive is preparing to release September s delayed jobs document on Thursday That could create further swings for the realm Content that s very strong would likely stay the Fed s hand on rate cuts while figures that are very weak would raise worries about the business activity In the Fed is likely to cut interest rates only in response to a slowing financial sector instead of trying to cut ahead of it according to Barry Bannister chief equity strategist at Stifel That s not as good an circumstances for stock prices and Bannister revealed the Fed s free lunch is over In the bond area Treasury yields held relatively steady The yield on the -year Treasury edged down to from late Friday In stock markets abroad indexes fell modestly across much of Europe and Asia Tokyo s Nikkei slipped after the administration announced that the Japanese business sector contracted at a annual pace in the July-September quarter South Korea s Kospi was an outlier and jumped as tech-related stocks there did well AP Business Writers Matt Ott and Elaine Kurtenbach contributed Source