On MondayThe Dow Jones Industrial Average rose 65 points, or 0.16%, to 41,241, the S&P 500 fell 18 points, or 0.32%, to 5,617 and the Nasdaq Composite lost 152 points, or 0.85%, to 17,726.

Early futures activity suggests the Dow Jones Industrial Average will hold on to the new record reached on Monday as the recovery consolidates after the early August sell-off.

The next big hurdle for the market will be chip giant Nvidia’s earnings and forecasts, which will be released after the market closes on Wednesday.

Stock prices are supported by U.S. Treasury yields, which are hovering near their lowest levels of the year, as investors grow more confident that the Federal Reserve will begin a cycle of interest rate cuts in mid-September.

The pace of these cuts will likely depend on future economic data, particularly the PCE inflation report next Friday and nonfarm payrolls data a week later.

Stephen Innes, managing partner of SPI Asset Management, welcomed signs that equity market breadth was improving as hopes of lower borrowing costs encouraged investors to look for opportunities beyond the big technology stocks.

“While the tech giants are taking a breather, small caps are seizing the opportunity and enjoying their time in the spotlight. This is a good sign that the market is not just specializing in a flash in the pan, but that there are still plenty of opportunities across the board,” says Innes.