U.S. stocks opened lower Monday, with the major indexes easing back from last week’s gains as investors digested fresh labor market signals and braced for a pivotal week in technology earnings.

The Dow Jones Industrial Average fell 98 points, or 0.22%, to 45,533 shortly after the opening bell. The S&P 500 slipped 12 points, or 0.18%, to 6,455, while the Nasdaq Composite edged down 38 points, or 0.18%, to 21,459. The Russell 2000 small-cap index lost 0.37%, underscoring investor caution in riskier corners of the market.

Labor Market Cooling

Fresh data from the Bank of America Institute underscored signs of a moderating job market. Job-to-job moves—a key measure of worker mobility—have slowed to just 2% above 2019 levels, a far cry from the surge seen during the Great Resignation. Pay raises for job hoppers, once exceeding 20% in 2022, have cooled to around 7% in July, below pre-pandemic norms. Meanwhile, the unemployment rate ticked up to 4.2%, with youth joblessness climbing to 7.4%.

That cooling dynamic is reshaping corporate sentiment. Analysts note that firms, facing tariff-related pressures and higher borrowing costs, have turned cautious on hiring, tilting the balance of power back toward employers.

Tech and AI in Focus

Technology stocks are once again at the center of investor attention. Nvidia, set to report quarterly results Wednesday, looms over markets as a bellwether for the AI boom. Wedbush analysts reiterated their bullish stance, noting that demand for Nvidia’s high-performance chips outstrips supply by 10-to-1. They raised their price target to $210 from $177.99, calling this week a potential “flex the muscles” moment for CEO Jensen Huang and the AI investment thesis.

Artificial intelligence spending remains strong, with global capital expenditures expected to surpass $350 billion this year, led by U.S. hyperscalers and Middle Eastern sovereign investors building massive AI-driven data centers. Other names tied to the trend, including AMD and Palantir, also drew upbeat ratings.

Commodities and Bonds

Commodity markets offered a mixed picture. Gold futures slipped 0.26% to $3,409.60 an ounce, weighed down by a firm dollar. Oil prices rose 0.64% to $64.07 a barrel, supported by expectations of tighter supply.

In the bond market, the yield on the 10-year Treasury nudged higher during New York trading, continuing a pattern noted by Apollo Global Management: domestic investors have been net sellers of U.S. debt while foreign buyers, drawn by higher yields, stepped in aggressively in May and June after April’s brief “Sell America” episode.

Economists also pointed to a shift in foreign appetite for U.S. assets. Torsten Slok, chief economist at Apollo, noted that April’s brief “Sell America” episode gave way to a strong rebound in May and June, when overseas investors became net buyers of Treasuries, equities, and private credit. The trend underscores that while domestic investors have turned cautious, foreign buyers continue to view the U.S. as “the most dynamic economy in the world,” helping to anchor demand for dollar-denominated assets

Investor Sentiment

With equities near record highs and credit spreads tight, investors are balancing optimism around AI-driven growth against signs of economic softening. “The Street continues to underestimate the demand curve for the AI Revolution,” Wedbush wrote, while labor data suggests consumer spending could face pressure if wage gains continue to flatten.

All eyes now turn to Nvidia’s midweek results, which could set the tone for tech stocks and broader market sentiment in the final stretch of summer trading.