Inventory market as we speak: S&P 500 closes decrease as Nvidia, AMD lead dip in tech

Investing.com — The S&P 500 closed decrease Monday, pressured by Nvidia-led weak spot in tech simply days forward of key inflation knowledge.

At 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Common was fell 240 factors, or 0.5%, whereas the S&P 500 index fell 0.6%, and the NASDAQ Composite slipped 0.6%. 

Nvidia, AMD drag down tech

NVIDIA Company (NASDAQ:NVDA)  inventory fell 2.6% after China launched an investigation into the chipmaker over suspected violations of the nation’s anti-monopoly regulation, in a transfer that may probably be seen as a retaliatory transfer towards Washington’s current chip curbs.

A 5.6% stoop in Superior Micro Units Inc (NASDAQ:AMD) additionally weighed on chip shares after Financial institution of America downgraded the corporate impartial from purchase, citing increased aggressive dangers.

Macy’s attracts activist investor consideration; Mondelez targets Hershey takeover

Macy’s (NYSE:M inventory rose almost 2% following a report that activist investor Barington Capital is urging the retailer to create a real-estate unit and take into account choices for its Bloomingdale’s and Bluemercury chains after constructing an undisclosed stake.

Hershey Co (NYSE:HSY) climbed greater than 10% after Bloomberg Information reported that Mondelez (NASDAQ:MDLZ) was exploring a takeover of the corporate.

The quarterly earnings season is progressively drawing to an in depth, however buyers will nonetheless be capable to examine Oracle’s (NYSE:ORCL) outcomes after the shut Monday.

CPI knowledge awaited for extra price cues

The November client worth index, due on Wednesday will supply extra cues on inflation, the US economic system and potential rate of interest cuts.

The headline studying is anticipated to point out a 2.7% year-on-year improve, a month-to-month improve of 0.2%, whereas core CPI inflation, which excludes risky meals and vitality costs, can be anticipated to have remained considerably above the Federal Reserve’s 2% goal.

The rise in inflation for November is prone to be pushed by increased meals and vitality costs, Goldman Sachs mentioned in a current be aware.

Whereas the central financial institution is extensively anticipated to chop rates of interest by 25 foundation factors subsequent week, additionally it is anticipated to sluggish its tempo of price cuts in 2025, given the nonetheless elevated inflation and a robust labor market.

Information on Friday confirmed stronger-than-expected progress in nonfarm payrolls in November, however the participation price shrank, whereas progress in manufacturing payrolls underwhelmed. 

“[T]he labor market is softer than in 2019 and has but to convincingly stabilize, and that is the important thing purpose we proceed to pencil in additional consecutive cuts,” Goldman Sachs added.

(Peter Nurse, Ambar Warrick contributed to this text.)