Nvidia slipped 1.3% on Monday as traders positioned ahead of the chip giant's Wednesday earnings report, pulling the Nasdaq composite down 0.5%. The S&P 500 held flat while the Dow added 0.3%, suggesting markets are bracing for what could be a decisive week for the tech trade. Nvidia's sheer size gives its quarterly results outsized influence on index direction.

A blockbuster earnings season lifted the S&P 500 to new highs, with first-quarter profits jumping 28% across the index — the strongest growth rate since 2021. Major retailers including Home Depot, Target, and Walmart also climbed, up 0.8%, 1.5%, and 1.4% respectively, ahead of their own earnings reports. Strong results could extend the rally, but analysts say Nvidia overshadows the week.

Louis Navellier, chief investment officer at Navellier & Associates, called it "the quiet before the storm." With tech stocks already dragging on indexes and Nvidia set to report Wednesday, the earnings-fueled rally now faces its toughest test in weeks.