By Ankika Biswas, Lisa Pauline Mattackal and Carolina Mandl(Reuters) -The Dow rallied on Monday to a one-month excessive, whereas the Nasdaq tumbled over 1% as buyers rotated out of AI-linked shares and added some laggards to their portfolios, betting on Federal Reserve rate of interest cuts this 12 months.The S&P 500 and Nasdaq ended decrease on the rotation out of expertise shares whose outsized good points have led this 12 months’s rally. Nonetheless, 9 of the S&P 500’s 11 main business sectors gained floor.Nvidia slid 6.68% for a 3rd session, as market watchers cited revenue taking within the semiconductor bellwether after final week’s meteoric rise made it the world’s most precious firm.Different chip shares together with U.S. shares of Taiwan Semiconductor Manufacturing, Broadcom, Marvell Expertise and Qualcomm dropped between 3.53% and 5.7%, dragging the chip shares index down 3.02%.”The market’s promoting a number of the winners and shopping for a number of the laggards right here,” stated Jack Janasiewicz, lead strategist at Natixis Funding Managers. “It is a little bit little bit of a nod to searching over the inflation information that’s popping out on Friday, as expectations are for a reasonably tender print.”Expertise and the buyer discretionary had been the one two decliners among the many 11 S&P 500 sector indexes, whereas the vitality sector was the highest outperformer, advancing 2.73%.”There’s been a rotation into a number of the worth areas of the market like financials, vitality, and utilities. Power has the extra advantage of a little bit little bit of a soar in oil costs,” stated Ed Clissold, chief U.S. strategist at Ned Davis Analysis. Oil costs rose on Monday spurred by stronger gasoline demand expectations, shares of vitality and oil subject companies firms rose.The Dow Jones Industrial Common jumped and registered a five-day successful streak. The small-caps index Russell 2000 additionally hit its highest in over per week, signaling broader market good points.Apart from Nvidia and different chip shares, “the remainder of the market is behaving positively on the expectation that we’re nonetheless on target for a tender touchdown base case,” stated Carl Ludwigson ,managing director at Bel Air Funding Advisors.The most important occasion on buyers’ radar for the week is Friday’s private consumption expenditures (PCE) worth index report, the Fed’s most well-liked measure of inflation, anticipated to point out a moderation in worth pressures.Traders nonetheless anticipate about two fee cuts this 12 months, pricing in a 61% probability of a 25-basis-point lower in September, as per LSEG’s FedWatch. The Fed’s personal newest projection is for one fee lower possible in December.Story continuesSan Francisco Fed President Mary Daly stated she doesn’t consider the U.S. central financial institution ought to lower charges earlier than policymakers are assured inflation is headed towards 2%.The S&P 500 misplaced 15.73 factors, or 0.29%, to finish at 5,448.89 factors, whereas the Nasdaq Composite misplaced 190.19 factors, or 1.09%, to 17,499.17. The Dow rose 257.99 factors, or 0.66%, to 39,408.32.Different information this week embrace sturdy items, weekly jobless claims and ultimate first-quarter GDP figures, the annual Russell index reconstitution. Some quarterly earnings studies are also due.On Thursday, President Joe Biden will debate Republican rival Donald Trump in Atlanta, which might affect the end result of a race for the November election that opinion polls present as neck-and-neck.Meta Platforms rose after a report the Fb mum or dad has mentioned integrating its generative AI mannequin into Apple’s just lately introduced AI system for iPhones. Apple’s shares additionally climbed.RXO leapt on plans to purchase United Parcel Service’s Coyote Logistics enterprise unit for $1.025 billion.Advancing points outnumbered decliners by a 2.25-to-1 ratio on the NYSE. There have been 179 new highs and 48 new lows on the NYSE.The S&P 500 posted 35 new 52-week highs and one new low whereas the Nasdaq Composite recorded 49 new highs and 128 new lows.Quantity on U.S. exchanges was 10.94 billion shares, in contrast with the 11.92 billion common for the total session over the past 20 buying and selling days.(Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru, and Carolina Mandl in New York; Enhancing by Maju Samuel and David Gregorio)