Equity markets struggled to gain traction around record highs Monday as they looked to a jam-packed week that includes the Fed chief's testimony before Congress and the jobs report. 

Apple (AAPL) helped pace all 30 Dow Jones stocks lower with its 2.5% decline to $175.50. The iPhone maker lost $70 billion in market capitalization after the European Union slapped it with a $2 billion antitrust fine for thwarting competition from music streaming rivals through restrictions on its App Store.

But Apple wasn't the only Magnificent 7 stock to help drag markets lower on the day. Most mega-cap tech names pulled back after a red-hot run that took both the S&P 500 and Nasdaq Composite to record closes on Friday.

Be that as it may, Nvidia ( NVDA ) bucked the trend in a big way Monday, gaining 3.6%. Anyone who put $1,000 into NVDA 20 years ago would be very pleased with the results today. NVDA ended the session with a market value of $2.13 trillion. 

Elsewhere, upcoming changes were announced to the S&P 500. Super Micro Computer ( SMCI ) stock vaulted on being tapped for the benchmark index, but analysts think Deckers Outdoor ( DECK ) might be the better buy.

Economic calendar in focus

"The S&P 500 and the Nasdaq Composite are each up seven of the previous eight weeks and higher in sixteen of the last eighteen weeks," writes Anthony Saglimbene, chief market strategist at Ameriprise. "On the latter, that's the longest such winning streak in over fifty years."

Although Saglimbene notes "strength across the market this year seems to be building momentum," it's a fact of life that markets never move in a straight line. An upcoming week with heavy implications for interest rate policy is right to give investors pause.

On Wednesday, Fed Chair Jerome Powell heads to Capitol Hill for his semi-annual report to Congress. The Fed chief last appeared in front of Congress in June 2023, just as the central bank was nearing the end of its aggressive series of rate hikes that brought the federal funds rate to its current 23-year-high range of 5.25% to 5.5%. 

While market participants are anxious for the Federal Reserve to start cutting interest rates, recent commentary from Powell and other central bank officials indicate they will not do so until they are certain inflation is coming down to the Fed's 2% target. 

During this week’s semi-annual monetary policy report to congress, we expect Fed Chair Powell to emphasize that the FOMC is in no rush to cut," writes Michael Gregory, deputy chief economist at BMO Capital Markets.

Markets also have to digest the fact that on Friday, we get the mother of all economic reports: the next jobs report. After all, the remarkably robust labor market – and the rising wages that come with it – is making the Fed wary about rushing into rate cuts.

At the closing bell, the Dow Jones Industrial Average slipped 0.3%, while the broader S&P 500 ticked down 0.1%. The tech-heavy Nasdaq Composite lost 0.4% during the session.