U.S. stocks slipped from record highs while investors weighed the start of corporate earnings season and an influx of bond supply that loom as speedbumps to a roaring rally.

Intel Corp. led tech shares lower after Nvidia Corp. said it’s offering the company’s first server microprocessors, extending a push into Intel’s most lucrative market. The S&P 500 dipped into negative territory in the wake of a third straight week of gains for the benchmark index. In Europe, the Stoxx Europe 600 Index weakened.

Yields were mostly higher as the U.S. Treasury auctioned three- and 10-year notes at slightly lower demand than the previous sales of the securities. The government will offer 30-year bonds tomorrow.

“We’re just kind of digesting,” said Marc Odo, client portfolio manager at Swan Global Investments. “This quiet period is just everyone digesting the first quarter and all of the news coming out of Washington about fiscal policy and monetary policy.”

While the U.S. recovery is accelerating, parts of Europe and South America are beset by rising COVID-19 cases and troubled vaccination rollouts. The rotation toward cyclical and small-cap stocks appears to have stalled as well, prompting worry about the strength of the U.S. economic comeback at the start of earnings season.

At the same time, massive government spending and central-bank stimulus could stoke excessive inflation. In an interview aired Sunday with CBS’s 60 Minutes, Federal Reserve Chair Jerome Powell sought to provide reassurance that any surge in price pressures won’t last.

“Investors are concerned about the impact the proposed infrastructure bill will have on corporate profits,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “If the corporate tax rate goes up by one-third from 21 per cent to 28 per cent then that will be a significant hit to earnings.”

Elsewhere, oil rose with the dollar little changed. Bitcoin neared an all-time high before a listing by the largest U.S. cryptocurrency exchange.

Some key events to watch this week:

• Banks and financial firms begin reporting first-quarter earnings, including JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc.
• U.S. officials and company executives are due to discuss the global shortage of computer chips on Monday.
• The U.S. releases inflation data Tuesday.
• Chinese trade data are scheduled for Tuesday.
• Economic Club of Washington hosts Fed Chair Jerome Powell for a moderated Q&A on Wednesday.
• U.S. Federal Reserve releases Beige Book on Wednesday.
• U.S. data including initial jobless claims, industrial production and retail sales come Thursday.
• China economic growth, industrial production and retail sales figures are on Friday.

These are some of the main moves in financial markets:

Stocks

• The S&P 500 Index was little changed at 4,128.11 as of 4:01 p.m. New York time.
• The Dow Jones Industrial Average decreased 0.2 per cent to 33,745.86.
• The Nasdaq 100 Index dipped 0.2 per cent to 13,819.35, the largest decrease in almost two weeks.
• The Nasdaq Composite Index decreased 0.4 per cent to 13,850, the biggest dip in two weeks.
• The Stoxx Europe 600 Index sank 0.5 per cent to 435.24, the largest decrease in more than three weeks.

Currencies

• The Bloomberg Dollar Spot Index was little changed at 1,142.35 .
• The euro climbed 0.1 per cent to US$1.191.
• The British pound gained 0.2 per cent to $1.3741, the first advance in a week.
• The Japanese yen strengthened 0.2 per cent to 109.40 per dollar.

Bonds

• The yield on two-year Treasuries advanced one basis point to 0.17 per cent, the highest in more than a week on the biggest rise in more than a week.
• The yield on 10-year Treasuries increased one basis point to 1.67 per cent.
• The yield on 30-year Treasuries advanced one basis point to 2.33 per cent.
• Germany’s 10-year yield climbed one basis point to -0.29 per cent, the highest in more than a week.
• Britain’s 10-year yield jumped two basis points to 0.789 per cent.

Commodities

• West Texas Intermediate crude climbed 0.7 per cent to US$59.72 a barrel.
• Gold depreciated 0.7 per cent to US$1,732.51 an ounce, the weakest in a week.

--With assistance from Kamaron Leach.