US stocks give up earlier gain, impacted by chips

US Stocks were little changed on Monday, following the S&P 500′s third straight weekly gain, as investors shifted focus to a key inflation report this week and struggles for the semiconductor industry.

The Dow Jones Industrial Average gained 31 points or 0.1%. The S&P 500 and Nasdaq Composite were flat. Stocks rose in morning trading but lost ground as the day progressed.

Nvidia is announcing weak revenue for the second quarter, putting pressure on semiconductor stocks. Monday’s moves follow a weekly rise for the S&P 500 and the Nasdaq Composite as a surprisingly strong monthly jobs report eased some recession fears. The resilient labor market also signaled that the economy could withstand more rate hikes from the Federal Reserve.

The stock market rally since the June 16 low looks to have legs in our view based on economic data and earnings results reported through last Friday. Some clean energy related shares gained after the Senate passed a $430 billion climate bill, the Inflation Reduction Act, which is expected to be passed by the House later this week. The Invesco Solar ETF was higher by 4% in early trading.