Wall Street update: Nvidia stock slides over 5% on profit taking, drags Nasdaq

Most U.S. stocks are rising Monday, but another slide for Wall Street heavyweight Nvidia is keeping indexes in check.

The S&P 500 was 0.2% higher in morning trading and nearing its record set last week. The Dow Jones Industrial Average was up 404 points, or 1%, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 0.5% lower.

Stocks of oil-and-gas companies are leading a widespread rally, where nearly 85% of the stocks in the S&P 500 are climbing. Exxon Mobil rose 2.1%, and oilfield services provider SLB gained 3% as oil prices hovered near their highest levels since April.

The S&P 500's gain would have been even bigger if not for a drop of 5.5% by Nvidia. The chip company is heading toward a three-day losing streak after rocketing 1,000% higher since the autumn of 2022. Nearly insatiable demand for Nvidia's chips to power artificial-intelligence applications have been a big reason for the U.S. stock market's run to records recently, even as the economy's growth slows under the weight of high interest rates.

The AI boom has been so frenzied that it’s raised worries about a possible bubble in the stock market and too-high expectations among investors. Nvidia’s stock has been pulling back since it briefly overtook Microsoft as Wall Street’s most valuable last week. It’s coming off its first losing week in the last nine.

Because Nvidia has become so massive in size, the moves that its stock makes carry extra weight on the S&P 500 and other indexes. It was the heaviest weight by far on the S&P 500 Monday.