Investing.com – U.S. stock index futures fell in tardy afternoon trading on Monday after a broad sell-off in technology stocks, especially Nvidia and its rivals, sparked a mixed session on Wall Street.

This week, the focus was squarely on the upcoming inflation reading, which is likely to take into account expectations for interest rate cuts this year.

remained unchanged at 5,517.25 points, while by 19:08 ET (23:08 GMT) they increased slightly to 19,763.75 points. were slightly higher and amounted to 38,868.0 points.

Wall Street withdraws from Nvidia, losses in chip production

Wall Street indexes lost ground amid edged declines in NVIDIA Corporation (NASDAQ:) and other chip-heavy stocks, while investors reaped profits after significant growth in the industry over the past few months.

Nvidia bore the brunt of the sales, falling 6.7% for a third straight session after briefly becoming Wall Street’s most valuable company last week. Shares lost another 1.1% in secondary trading.

Still, Nvidia is up about 138% this year, and analysts remain bullish on the stock amid a massive AI-fueled demand boom.

Shares of other chipmakers such as Broadcom Inc (NASDAQ:), U.S. shares of Taiwan Semiconductor Manufacturing (NYSE:) and Qualcomm Incorporated (NASDAQ:) held steady on the secondary market after Monday’s declines.

Memory chip maker Micron Technology Inc (NASDAQ:) posted slight declines ahead of quarterly results due on Wednesday.

Losses in chipmaker stocks sparked a mixed close on Wall Street. The index fell by 0.3% to 5,447.87 points and by 1.1% to 17,500.60 points. However, the company performed better in non-technology sectors, rising 0.7% to a one-month high of 39,411.21 points.

Investors have been seen pulling back from technology and focusing on more economically sensitive sectors ahead of key inflation data later this week, which should provide more clues on interest rates.

PCE inflation in anticipation

This week, the focus was squarely on the data, which is the Federal Reserve’s preferred measure of inflation.

The reading is due on Friday and is expected to show a slight cooling in inflation. However, PCE numbers are widely expected to remain well above the Fed’s annual target range of 2%.

Rigid inflation is expected to delay any potential Fed plans to cut interest rates – a scenario that bodes poorly for stock markets. However, expectations of possible interest rate cuts have led to a major downturn on Wall Street over the past few months.

Birkenstock and SolarEdge decline in secondary trading

Among the main players in the secondary market, a shoe manufacturer Birkenstock Holding Ltd (NYSE:) fell 5% after it reported that its major shareholder plans to divest 14 million shares in a public offering.

SolarEdge Technologies Inc (NASDAQ:) fell 13.4% after announcing plans to offer $300 million in novel debt.