Market activity showed a downward trend on Monday, with notable declines in the Nasdaq and the S&P 500 as they retreated from last Friday's record closing levels. The Dow Jones Industrial Average continued its decline for the third session in a row.
Currently, the key indices are hovering just above their lowest points for the day. The Dow has decreased by 94.99 points, marking a 0.2% drop, landing at 44,547.53. The Nasdaq has shed 112.06 points or 0.6%, settling at 19,747.72, while the S&P 500 has fallen by 28.05 points or 0.5%, reaching 6,062.22.
Prominent among the declining stocks, Nvidia (NVDA) shares are significantly impacting the market after a 3.1% drop today. This downturn follows news of an investigation by Chinese regulators into potential antitrust law breaches by the chipmaker.
Investors may also be taking profits after recent market rallies that pushed major indices to unprecedented highs. However, overall trading remains somewhat muted as participants await forthcoming inflation data, expected later in the week.
Anticipated reports on both consumer and producer price inflation, due on Wednesday and Thursday respectively, may influence future interest rate projections. The Federal Reserve is broadly expected to implement a 25-basis-point rate cut next week, though there is some uncertainty regarding further rate reductions in the early part of next year.
Sector Developments
Despite broader market softness, gold stocks have made considerable gains, propelling the NYSE Arca Gold Bugs Index up by 5.2% to reach its peak in nearly a month. This upswing in gold stocks is driven by a sharp rise in the gold price, with February futures climbing by $35.20 to $2,694.80 per ounce.
Additionally, a rise in crude oil prices has bolstered energy stocks, though utilities stocks, which are sensitive to interest rate changes, are under pressure due to rising Treasury yields.
Global Markets
In international markets, Asia-Pacific stocks presented a mixed picture on Monday. Japan's Nikkei 225 edged up by 0.2%, Hong Kong’s Hang Seng Index surged by 2.8%, whereas South Korea's Kospi fell sharply, down 2.8%.
European markets, however, generally trended higher for the day. The French CAC 40 Index advanced by 1.1%, the UK's FTSE 100 Index increased by 0.7%, and Germany's DAX Index remained slightly above unchanged levels.
In the bond market, following recent strength, Treasury securities have experienced a decline. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, has risen by 3.5 basis points to 4.188%.
