Wall Street drifted on Monday as investors paused after last week’s rally on expectations of more interest rate cuts from the Federal Reserve. The S&P 500 held near its record high, the Dow Jones Industrial Average dropped 234 points or 0.5% as of 12:13 pm Eastern, while the Nasdaq composite rose 0.3%, AP reported.Gains in heavyweight technology stocks helped limit the pullback. Alphabet climbed 2% and Nvidia rose 2.1%, while Keurig Dr Pepper sank 8% after announcing it will buy Peet’s Coffee owner JDE Peet’s in a deal valued at about $18 billion.Treasury yields moved higher after Friday’s sharp decline. The yield on the 10-year note rose to 4.28% from 4.25%, while the two-year yield edged up to 3.73% from 3.70%. European markets were mostly lower and Asian shares closed weaker overnight.According to CME Group data, traders are betting with 86% confidence that the Fed will cut rates by a quarter percentage point at its September meeting. The central bank has held rates steady since late 2024, weighing inflation risks against growing concerns about a cooling job market.Consumer confidence will be in focus Tuesday when The Conference Board releases its August survey, with economists expecting little change from July. The bigger test comes Friday with the government’s personal consumption expenditures price index — the Fed’s preferred inflation gauge. Economists expect the July PCE to show a 2.6% annual increase, unchanged from June and just above the Fed’s 2% target.Earnings will also shape trading sentiment this week. Nvidia, seen as a bellwether due to its role in powering artificial intelligence, will post results on Wednesday. Retailers Best Buy and Dollar General report Thursday, giving fresh signals on how tariffs and costs are affecting consumer demand.