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US stocks retreated from record highs on Monday as investors assessed a potential risk in the technology sector and prepared for new inflation data.

Tech stocks led Monday's session lower, with Nvidia shares one of the biggest losers.

The chipmaker's stock fell about 3% after China launched a probe into the company, investigating whether the company potentially violated anti-monpoly rules in its 2020 acquisition of chip design company Mellanox.

Nvidia originally received approval from Chinese regulators to complete the deal in 2020, but regulators are now investigating whether Nvidia violated the deal's conditions.

"The move comes shortly after the Biden Administration clamped down on the types of products the company can export to China to limit the country's ability to expand its military technology, causing some observers to question if the lawsuit is retaliatory or a pre-emptive move in anticipation of new tariffs," José Torres, senior economist at Interactive Brokers said on Monday.

Investors are also awaiting key inflation data later this week, which should help determine whether the Federal Reserve will pursue further interest rate cuts.

The November consumer price index will be released Wednesday morning and is expected to show a slight uptick from October.

Economists expect the year-over-year CPI to rise to 2.7% compared to 2.6% in October.

Bank of America economists expect month-over-month Core CPI to be 0.2%, and said anything above that level could be consequential for interest rates.

"We are looking for a 0.2% m/m print. If that proves correct, we think it will greenlight a Fed cut in December. That said, recent Fed speak suggests it will be a live meeting and cuts beyond December aren't a guarantee," Bank of America said in a Monday note.

Markets are currently pricing in an 86% chance of a 25 basis point interest rate cut from the Fed next week, according to the CME FedWatch tool.

Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:

Here's what else happened today: