US markets began the new trading week on a mixed note even as the Dow Jones made a new high but pulled back from those levels.

The Dow Jones made a new high of 41,420 before slipping from those levels. Yet, the index managed to close above the flat line.

However, the S&P 500 fell 20 points short of a record high and ended 0.3% lower, while the tech-heavy Nasdaq shed 0.8% as investors chose to book some profits after a one-way move post the August 5 sell-off.

The Nasdaq fell ahead of results from semiconductor giant Nvidia after the bell on Wednesday. Shares fell 2% on Monday as investors look ahead to gauge the strength of the AI trade.

Although the street is now unanimous that the US Federal Reserve will cut policy rates during its September 17-18 policy meet, the debate has now begun over the quantum of the same.

Traders continued to keep a close eye on US policymakers, with Fed Bank of San Francisco President Mary Daly telling Bloomberg Television she believes it’s appropriate to begin cutting rates. Her Richmond counterpart Thomas Barkin says he still sees upside risks for inflation, though he supports “dialing down” rates in the face of a cooling labor market.

Companies like Nordstrom will also report results after the bell on Tuesday, which can provide insights on the health of the consumers in the country.

“Powell sealed the deal for a September cut at Jackson Hole — leaving intact our thesis for continued broadening/rotation,” said Ohsung Kwon at Bank of America Corp. “But don’t sleep on Nvidia earnings, a consistent driver of S&P returns and still a risk to markets if they disappoint.”

Strong flows from corporate buybacks, systematic funds and retail investors are expected to push stocks higher in the coming weeks, according to Goldman Sachs Group Inc.’s Scott Rubner.

Treasury 10-year yields rose two basis points to 3.82%. Oil advanced after Libya’s eastern government said it will halt exports, building on tensions in the Middle East after Israeli strikes on Hezbollah targets in southern Lebanon.

“Move over, Powell. It’s Jensen Huang’s turn to move markets,” said Anthony Saglimbene at Ameriprise, referring to Nvidia’s chief. “In our view, Nvidia’s earnings report this week may actually have more impact on the overall market than Powell’s Jackson Hole speech last week.”

(With Inputs From Agencies.)