US STOCKS-Wall St dips after record-breaking rally; economic data on tap
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Apple hit EU antitrust fine in Spotify case
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Macy's jumps after Arkhouse, Brigade raise buyout bid
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Crypto stocks soar after bitcoin bursts above $65,000
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Super Micro Computer jumps ahead of S&P 500 entry
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Indexes down: Dow 0.39%, S&P 0.16%, Nasdaq 0.15%
(Updated at 9:40 a.m. ET/ 1440 GMT)
By Ankika Biswas and Amruta Khandekar
March 4 (Reuters) -
Wall Street's main indexes dipped on Monday after the S&P 500 and the Nasdaq's record-closing highs in the prior session, as investors paused at the start of a week packed with key jobs data and Fed Chair Jerome Powell's congressional testimony.
The Nasdaq kicked off March by hitting an intraday all-time high on Friday, also closing at its highest level for the second day, as the artificial intelligence-driven tech rally continues to steal the spotlight on Wall Street.
The S&P 500 has also been on a record-breaking rally, with BofA Global Research lifting its year-end target for the benchmark index to 5,400, from 5,000, representing a 5% upside from current levels.
"Some type of negative AI development would be your No. 1 risk, and also if inflation remains sticky along with geopolitical political issues," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
All eyes will be on monthly non-farm payrolls, JOLTS job openings and the ADP National Employment report, as well as the Fed's "Beige Book" scheduled throughout the week for insights into the economy's health.
The data comes at a time when investors have already pared expectations for how quickly and deeply the Fed will cut rates, as a stronger-than-expected economy risks reigniting inflation if policy eases too soon.
Powell is due to testify before lawmakers on Wednesday and Thursday, with analysts assuming the Fed chief to stay in wait-and-watch mode on policy after a recent escalation in inflation.
Traders see a 70.5% chance of the first rate cut arriving in June and 89% odds of that in July, as per CME Group's FedWatch tool.
At 9:40 a.m. ET, the Dow Jones Industrial Average was down 151.11 points, or 0.39%, at 38,936.27, the S&P 500 was down 7.97 points, or 0.16%, at 5,129.11, and the Nasdaq Composite was down 25.21 points, or 0.15%, at 16,249.73.
Seven of the 11 major S&P 500 sectors were in the red, led by communication services.
Most megacap stocks inched lower, with Apple down 2.1% following a $2-billion EU antitrust fine for preventing Spotify and other music streaming services from informing users of payment options outside its App Store.
Nvidia outperformed peers with an advance of 3.2% afterits market value closed above $2 trillion for the first time on Friday.
Other chipmakers including Micron Technology, Arm Holdings, and U.S.-listed shares of Taiwan Semiconductor Manufacturing gained between 0.6% and 5.7%.
AI server maker Super Micro Computer and shoe maker Deckers Outdoor jumped 17.5% and 3.1% respectively ahead of their inclusion in the S&P 500 index.
Macy's jumped 16.4% after real-estate-focused investing firm Arkhouse Management and Brigade Capital Management raised their offer for the department store chain.
Cryptocurrency and blockchain-related firms including Coinbase Global, Bitfarms, Riot Platforms and Marathon Digital climbed between 3.7% and 7.1% after bitcoin rallied to a two-year high and broke above $65,000.
Declining issues outnumbered advancers for a 1.04-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.10-to-1 ratio on the Nasdaq.
The S&P index recorded 59 new 52-week highs and one new low, while the Nasdaq recorded 100 new highs and 24 new lows.
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Maju Samuel)
