Wall Street Drifts to Mixed Finish     08/24 15:27

   U.S. stocks drifted to a mixed finish Monday as the countdown ticks toward 
potentially market-moving events coming later in the week.

   NEW YORK (AP) -- U.S. stocks drifted to a mixed finish Monday as the 
countdown ticks toward potentially market-moving events coming later in the 
week. The areas of the bond market that the U.S. Treasury Department is trying 
to calm down, meanwhile, eased a bit.

   The S&P 500 slipped 0.3% and pulled a bit further from its all-time high set 
earlier this month. The Dow Jones Industrial Average added 140 points, or 0.3%, 
and the Nasdaq composite fell 0.8%.

   Tech stocks led the way downward following big swings through the summer on 
worries that the frenzy around artificial-intelligence technology sent prices 
too high and that the huge demand for AI chips won't be sustainable if they 
don't produce enough profits.

   Chip giant Nvidia has been a tremendous winner of the AI boom and become 
Wall Street's largest and most influential stock because of it. It will deliver 
its latest quarterly earnings report on Wednesday, which could dictate the next 
big move for AI-related stocks.

   Nvidia sank 2.9% and was the heaviest weight on the S&P 500, where the 
majority of stocks rose. Drops of 5.8% for Micron Technology and 2.6% for 
Broadcom also helped drag the index lower.

   All told, the S&P 500 fell 21.51 points to 7,652.86. The Dow Jones 
Industrial Average rose 140.15 to 53,417.16, and the Nasdaq composite sank 
200.26 to 25,980.19.

   The other big factor moving stocks recently has been the bond market, where 
longer-term Treasury yields climbed through the summer on worries about high 
inflation, huge government debts and other factors. High yields make it more 
expensive for everyone to borrow, not just the government, and have already 
pushed up mortgage rates and hurt the housing industry.

   The U.S. Treasury Department announced a surprise move last week to increase 
the size of planned buybacks of Treasurys, which could help contain the rise in 
yields for 10- and 30-year Treasurys. But analysts warned the move may have 
only a limited effect because of how small the size of the buybacks are and how 
they do not fix the fundamental problems of too-high debt for the U.S. 
government and expensive oil prices because of the war with Iran.

   On Monday, the yield of the 10-year Treasury eased to 4.70% from 4.74% late 
Friday and is back below where it was late Tuesday, before the U.S. Treasury 
Department made its surprise announcement.

   Helping to bring yields down on Monday was a drop in oil prices. Brent crude 
fell 2.3% to $90.54 per barrel.

   Last month it zigzagged between $72 and $102 as hopes rose and fell that the 
United States and Iran could reach a deal that would allow oil tankers to 
freely exit the Persian Gulf again. The United States on Monday announced new 
sanctions aimed at Iran, which helped drag the value of Iran's currency to a 
record low against the U.S. dollar.

   Despite Monday's easing of Treasury yields, analysts warn the U.S. 
government's attempts to influence the bond market could ultimately mean higher 
pressure on inflation. Inflation already is worse than nearly everyone would 
like and has been for years.

   That raises the pressure on the Federal Reserve to raise the federal funds 
rate, which affects very short-term overnight loans. When the Fed raises that 
rate, it could help keep a lid on inflation by trying to slow the overall 
economy and undercutting prices for stocks and other investments.

   The Fed's new chairman, Kevin Warsh, is set to deliver a speech Friday at an 
economic symposium in Jackson Hole, Wyoming. The mountain setting has been the 
backdrop for major Fed policy announcements in the past, but investors are 
unsure of what they may get from Warsh this time around.

   Warsh has insisted that he wants to give financial markets fewer clues about 
what the Fed will do with interest rates, hoping that markets react more to 
incoming data about the economy and inflation than to what the Fed is signaling.

   But with U.S. Treasury Secretary Scott Bessent announcing his move last 
week, Warsh now holds the ball, according to economists at Bank of America. 
Expectations are high among investors for Warsh to talk about inflation and how 
the Fed could potentially react, and a failure to deliver could lead to bond 
yields rising further, they said.

   In stock markets abroad, indexes dipped around much of the world. South 
Korea's Kospi fell 3.1%, and Hong Kong's Hang Seng dropped 1.9% for two of the 
biggest moves.

   Seoul has been home to some of the world's sharpest swings this summer 
because it is dominated by two tech titans benefiting from the AI boom, Samsung 
Electronics and SK Hynix.