S&P, Nasdaq slide amid concern about semiconductor demand

Aug. 8 (UPI) -- U.S. markets closed flat on Monday after giving up earlier gains as investors weighed demand concerns in the semiconductor industry.

The Dow Jones Industrial Average ended the day with meager gains, rising 29.07 points, or 0.089%, while the S&P 500 dropped 0.12% and the Nasdaq Composite slid 0.1%.

Stocks gave up gains as chipmaker Nividia announced its revenue for the second quarter declined by 19% from the quarter prior.

Shockwaves from the announcement were felt among Nvidia's competitors as shares of AMD fell 2.19% and Broadcom dropped 1.07%.

Monday also saw meme stocks surge with Bed Bath & Beyond stock skyrocketing 39.83% despite no news to drive shares higher, while GameStop stock rose 8.65% and AMC stock gained 7.93%.

Disney stock was the best performing stock on the Dow, rising 2.36%.

Monday's flat day of trading came after the S&P 500 and Nasdaq posted weekly gains on Friday as the Labor Department said that 528,000 jobs were added last month, more than twice what analysts expected.

The news helped to ease some concerns about a recession, injecting optimism into the market.

"The question is if the rally is running out of breadth," Angelo Kourkafas, investment strategist at Edward Jones, said. "There are certainly things that have improved after the past month that would justify, in our view, a move higher, which we have certainly seen. ... However, a lot has to go right to be able to say that the coast is clear."

Investors this week are also looking ahead to a trio of inflation reports including the Consumer Price Index, Producer Price Index and unit labor costs.

A flurry of corporate earnings are also due with Disney, Coinbase, Tyson Foods and Rivian Automotive set to report.