US stocks experienced fluctuation on Monday ahead of a consequential week that could provide crucial indications for the near-term path of interest rates. The S&P 500 hovered around the flatline, while the tech-heavy Nasdaq Composite managed a slight gain of 0.1% following its latest record-setting performance on Friday. The Dow Jones Industrial Average erased earlier session gains, slipping 0.2%.

Both the S&P 500 and Nasdaq are aiming to build on the records they secured in the aftermath of Friday's jobs report, which suggested a further slowdown in the labor market. This resulted in an influx of bets on a potential interest rate cut from the Federal Reserve in September. According to the CME FedWatch tool, about 75% of traders expect a rate cut next month.

Several events taking place this week could further support the growing momentum for a rate cut. Federal Reserve Chair Jerome Powell is set to testify before Congress on Tuesday and Wednesday, providing semiannual testimony. Additionally, the release of the latest Consumer Price Index (CPI) data on Thursday is anticipated. Economists forecast that headline inflation rose 3.1% over the past year, which would match the lows seen at the start of the year.

In other market-moving news, a left-wing coalition in France secured the most votes in the country's election, stunning the far-right party that was hoping to secure a parliamentary majority. As a result, the benchmark French index rose slightly.

In corporate news, Boeing pleaded guilty to a criminal conspiracy charge related to two fatal 737 Max crashes. Despite this, Boeing shares saw an increase of nearly 1% during the session. Meanwhile, Tesla stock erased its early losses to turn positive as the electric vehicle giant seemed on track to extend its eight-day winning streak.

A notable entity in the market was Nikola, which gained over 20% and occupied the second spot on Yahoo Finance's trending ticker list. Over the past five sessions, the stock has risen by more than 35%. Last week, Nikola announced the sale of 72 Class 8 hydrogen fuel cell trucks, exceeding the high end of their truck sales guidance.

Chip stocks outperformed on Monday, with the iShares semiconductor ETF gaining over 1.5%. Some of the largest gainers included Nvidia, rising 2%, AMD soaring 3%, and Intel increasing by approximately 5%. The performance of chipmakers contributed to the Nasdaq Composite staying in positive territory, while the Dow Jones Industrial Average dipped slightly and the S&P 500 remained close to the flatline.

Bitcoin hovered around the $56,000 level on Monday afternoon after experiencing a decline over the past week. Concerns related to the selling of cryptocurrencies by defunct exchange Mt. Gox and the German government selling a large amount of Bitcoin at once may have contributed to the downward pressure. Bitcoin slid as much as 5% over the past 24 hours, reaching just under $55,000, approximately $19,000 below its record high in March.

In other news, Paramount stock dropped after the entertainment giant announced plans to merge with Skydance Media, ending the Redstone family's control of the company. Paramount shares fell about 3% as investors digested the terms of the deal, which involves Skydance first acquiring the Redstone family's stake before completing a full merger.

Overall, the stock market experienced mixed movements on Monday as investors eagerly await key inflation data and insights from Federal Reserve Chair Jerome Powell's testimony.