Financial Markets                      12/09 15:53

   

   NEW YORK (AP) -- A slide for market superstar Nvidia on Monday knocked Wall 
Street off its big rally and helped drag U.S. stock indexes down from their 
records.

   The S&P 500 fell 0.6%, coming off its 57th all-time high of the year so far. 
The Dow Jones Industrial Average dipped 240 points, or 0.5%, and the Nasdaq 
composite pulled back 0.6% from its own record.

   Nvidia's fall of 2.5% was by far the heaviest weight on the S&P 500 after 
China said it's investigating the company over suspected violations of Chinese 
anti-monopoly laws. Nvidia has skyrocketed to become one of Wall Street's most 
valuable companies because its chips are driving much of the world's move into 
artificial-intelligence technology. That gives its stock's movements more sway 
on the S&P 500 than nearly every other.

   Nvidia's drop overshadowed gains in Hong Kong and for Chinese stocks trading 
in the United States on hopes that China will deliver more stimulus for the 
world's second-largest economy. Roughly three in seven of the stocks in the S&P 
500 also rose.

   The week's highlight for Wall Street will arrive midweek when the latest 
updates on inflation arrive. Economists expect Wednesday's report to show the 
inflation that U.S. consumers are feeling remained stuck at close to the same 
level last month. A separate report on Thursday, meanwhile, could show an 
acceleration in inflation at the wholesale level.

   They're the last big pieces of data the Federal Reserve will get before its 
meeting next week on interest rates. The widespread expectation is still that 
the central bank will cut its main interest rate for the third time this year.

   The Fed has been easing its main interest rate from a two-decade high since 
September to offer more help for the slowing job market, after bringing 
inflation nearly all the way down to its 2% target. Lower interest rates can 
ease the brakes off the economy, but they can also offer more fuel for 
inflation.

   Expectations for a series of cuts from the Fed have been a major reason the 
S&P 500 has set so many all-time highs this year.

   "Investors should enjoy this rally while it lasts--there's little on the 
horizon to disrupt the momentum through year-end," according to Mark Hackett, 
chief of investment research at Nationwide, though he warns stocks could 
stumble soon because of how overheated they've gotten.

   On Wall Street, Interpublic Group rose 3.6% after rival Omnicom said it 
would buy the marketing and communications firm in an all-stock deal. The pair 
had a combined revenue of $25.6 billion last year. Omnicom, meanwhile, sank 
10.2%.

   Macy's climbed 1.8% after an activist investor, Barington Capital Group, 
called on the retailer to buy back at least $2 billion of its own stock over 
the next three years and make other moves to help boost its stock price.

   Super Micro Computer rose 0.5% after saying it got an extension that will 
keep its stock listed on the Nasdaq through Feb. 25, as it works to file its 
delayed annual report and other required financial statements.

   Earlier this month, the maker of servers used in artificial-intelligence 
technology said an investigation found no evidence of misconduct by its 
management or by the company's board following the resignation of its public 
auditor.

   All told, the S&P 500 fell 37.42 points to 6,052.85. The Dow dipped 240.59 
to 4,401.93, and the Nasdaq composite lost 123.08 to 19,736.69.

   In the oil market, a barrel of benchmark U.S. crude rallied 1.7% to settle 
at $68.37 following the overthrow of Syrian leader Bashar Assad, who sought 
asylum in Moscow after rebels. Brent crude, the international standard, added 
1.4% to $72.14 per barrel.

   The price of gold also rose 1% to $2,685.80 per ounce amid the uncertainty 
created by the end of the Assad family's 50 years of iron rule.

   In stock markets abroad, the Hang Seng jumped 2.8% in Hong Kong after top 
Chinese leaders agreed on a "moderately loose" monetary policy for the world's 
second-largest economy. That's a shift away from a more cautious, "prudent" 
stance for the first time in 10 years. A major planning meeting later this week 
could also bring more stimulus for the Chinese economy.

   U.S.-listed stocks of several Chinese companies climbed, including a 12.4% 
jump for electric-vehicle company Nio and a 7.4% rise for Alibaba Group. Stocks 
in Shanghai, though, were roughly flat.

   In Seoul, South Korea's Kospi slumped 2.8% as the fallout continues from 
President Yoon Suk Yeol 's brief declaration of martial law last week in the 
midst of a budget dispute.

   In the bond market, the yield on the 10-year Treasury rose to 4.19% from 
4.15% late Friday.

   ___

   AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

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