US stocks retreat from record performance, bitcoin advances to fresh highs

US stocks closed lower on Monday as investors have shifted focus to the upcoming congressional testimony by Fed Chair Jerome Powell and the monthly NFP report that could put equity gains to a real test.

The S&P 500 fell just below the flatline after ending Friday with its 16th weekly win in 18 weeks. The Dow Jones Industrial Average declined 0.2%. The Nasdaq Composite retreated 0.4% as drop in both Apple and Tesla shares weighed on the tech heavy index.

Stocks have racked up gains amid a relentless AI-spurred run-up in techs, which helped the Nasdaq Composite finally nail a fresh all-time high after a year-long wait last week.

The tech rally, and Nvidia’s breakneck rise to a $2 trillion valuation in particular, has prompted concerns about a building bubble — though some analysts are less worried. Shares of the chipmaker rose 6% to new all time highs during Monday’s session.

Also on Monday, bitcoin rose more than 7% to hover above $67,000 as the cryptocurrency inched closer towards a record high, while Japan’s Nikkei 225 stock index breached the key 40,000 level for the first time.

A dose of reality could lie ahead for the high hopes and the hype, when the Fed’s Powell steps up to speak and the February jobs data arrives. Both will play into calculations for interest rate cuts and shed light on whether the US economy is headed for a “soft landing” or stagflation. Powell is set to give testimony to Congress on Wednesday, while the labor data is due on Friday.

In a shot across the bows for Big Tech, EU antitrust regulators fined Apple about $2 billion over App Store restrictions on Spotify and other music streaming services. Apple shares slipped 2.5% after the news.

Among big movers, shares in Super Micro Computer popped as much as 25% to a new all-time high on Monday ahead of the AI server maker’s entry on the S&P 500.