The Dow Jones Industrial Average ( ^DJI ) notched a record close on Monday while the other two major averages slid as investors weighed the imminent arrival of interest rate cuts and braced for a busy week dominated by Nvidia's ( NVDA ) earnings report.

The Dow Jones Industrial Average rose more than 0.1% to close at a new high of 41,240.52. The S&P 500 ( ^GSPC ) slipped 0.3%, while the tech-heavy Nasdaq Composite ( ^IXIC ) sank roughly 0.8%.

Technology lagged during the session as shares of AI chip giant Nvidia fell 2% along with semiconductor peer Broadcom ( AVGO ) and EV maker Tesla ( TSLA ).

Stocks are coming off weekly gains, notched after Chair Jerome Powell made it crystal clear the Fed is ready to pivot to lowering rates in September. The major indexes all gained more than 1% last week .

Markets quickly moved to price in cuts totaling 1% by the end of 2024. But with only three Fed meetings left in the year — in September, November, and December — and the August jobs report still to come, Wall Street is wondering when and whether a 0.5% cut is likely.

Now, the focus is firmly on Nvidia's earnings report — the marquee event of the week — which will likely determine whether the market mood stays upbeat. If the chipmaker's results on Wednesday fail to meet sky-high expectations, that could further dent the AI trade , which has powered stock gains , and, in turn, put the market's rebound from August lows to the test.

Also ahead is a Friday update on Fed policymakers' preferred inflation gauge, the PCE index print, which is likely to feed into rate-path calculations. Also on deck is a reading on second quarter GDP on Thursday.

Meanwhile, oil prices jumped around 3% amid reports of production shutdowns in Libya and fears of escalating Mideast tensions after Israel and Hezbollah launched strikes. Global benchmark Brent crude futures ( BZ=F ) settled at $81.43 a barrel, while US benchmark WTI crude futures ( CL=F ) closed at $77.42 a barrel.