After an initial period of indecision, stocks predominantly declined on Monday. The key indices moved downward, with both the Nasdaq and the S&P 500 retracting from their record closing highs achieved last Friday.
By the close of trading, major indices showed significant losses. The Dow dropped 240.59 points, equating to a 0.5 percent decline, to settle at 44,401.93. Similarly, the Nasdaq fell 123.08 points, or 0.6 percent, to 19,736.69, and the S&P 500 decreased by 37.42 points, or 0.6 percent, ending at 6,052.85.
A notable factor impacting the markets was a downturn in Nvidia (NVDA) shares, which suffered a 2.6 percent drop. This decline followed news that Chinese regulators had initiated an investigation into potential violations of the nation's antimonopoly laws by the chipmaker.
Traders also appeared to be capitalizing on the recent market strength that saw indices reach new highs. The general weakness on Wall Street came as investors anticipated key U.S. inflation data to be released later in the week.
Scheduled reports on consumer and producer price inflation, expected on Wednesday and Thursday respectively, stand to influence interest rate projections.
While it is broadly anticipated that the Federal Reserve will reduce rates by a further 25 basis points next week, uncertainty persists regarding the central bank’s rate-cutting trajectory for early next year.
**Sector Overview**
Telecom stocks faced significant selling pressure, leading the NYSE Arca North American Telecom Index to decline by 1.7 percent. Interest rate-sensitive utilities stocks also experienced marked weakness, evidenced by a 1.6 percent drop in the Dow Jones Utilities Average. Brokerage and banking shares encountered notable declines as well, although gold stocks rose sharply, mirroring an increase in the price of the precious metal.
**International Markets**
Global markets recorded varied performances. In the Asia-Pacific region, Japan's Nikkei 225 Index edged up by 0.2 percent, and Hong Kong's Hang Seng Index surged by 2.8 percent. In contrast, South Korea's Kospi saw a sharp decline of 2.8 percent.
Conversely, European stocks generally rose. The French CAC 40 Index climbed by 0.7 percent and the U.K.'s FTSE 100 Index increased by 0.5 percent. However, the German DAX Index, diverging from this upward trend, slipped by 0.2 percent.
In the bond markets, Treasury prices fell, reversing some of their recent gains. Consequently, the yield on the benchmark ten-year note, which inversely correlates with its price, rose by 4.8 basis points to 4.199 percent.
