FX.co ★ US Stocks Start the Week in the Red

On Monday, U.S. stock markets ended the day with further declines. The S&P 500 dipped by 0.3%, the Dow Jones Industrial Average decreased by 0.4%, and the Nasdaq Composite fell by 0.2%. These shifts came as investors re-evaluated the potential direction of Federal Reserve policy leading up to 2026. Although a rate cut for Wednesday is anticipated with approximately a 90% probability, persistent signs of inflation are prompting a more cautious approach from market participants. Attention was also drawn to a significant development in the bidding war involving Warner Bros. Discovery, which saw its shares rise by 4.4% after Paramount Skydance made a $30 per share offer, surpassing Netflix’s offer priced at $27.75 in a cash-and-stock exchange. As a result, Paramount's shares increased by 9%, whereas Netflix saw a 3.4% downturn. In other market movements, Confluent surged by 29.1% following IBM’s announcement of a planned $11 billion acquisition, Tesla experienced a 3.4% decline due to a downgrade, and Carvana jumped by 12.1% after being added to the S&P 500 index. This week, investor focus will remain on tech sector valuations, particularly as Broadcom and Oracle prepare to release their financial results. Notably, Broadcom's shares rose by 2.8%, reaching new record highs amid discussions with Microsoft regarding the development of custom chips.