Investing.com — Market Overview

The S&P 500 closed lower on Monday, pressured by Nvidia-led weakness in tech just days ahead of key inflation data.

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

Nvidia, AMD Drag Down Tech

NVIDIA Corporation (NASDAQ:NVDA) stock fell 2.6% after China launched an investigation into the chipmaker over suspected violations of the country's anti-monopoly law. This move is likely viewed as retaliation against Washington's recent chip curbs.

A 5.6% slump in Advanced Micro Devices Inc (NASDAQ:AMD) also weighed on chip stocks after Bank of America downgraded the company from buy to neutral, citing higher competitive risks.

Macy's Attracts Activist Investor Attention; Mondelez Targets Hershey Takeover

Macy’s (NYSE:M) stock rose nearly 2% following a report that activist investor Barington Capital is urging the retailer to establish a real estate unit and explore options for its Bloomingdale's and Bluemercury chains after amassing an undisclosed stake.

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

The quarterly earnings season is winding down, but investors will still review Oracle's (NYSE:ORCL) results after the close on Monday.

CPI Data Awaited for More Rate Cues

The November consumer price index, due on Wednesday, will provide additional insights into inflation, the US economy, and potential interest rate cuts.

The headline reading is expected to show a 2.7% year-on-year increase and a monthly rise of 0.2%. Meanwhile, core CPI inflation is anticipated to remain significantly above the Federal Reserve's 2% target.

Goldman Sachs noted that the increase in inflation is likely driven by higher food and energy prices.

While a 25 basis point cut in interest rates is expected next week, a slower pace of cuts is forecast for 2025 due to sustained elevated inflation and a strong labor market.

Data on Friday revealed stronger-than-expected growth in nonfarm payrolls for November, although the participation rate decreased and manufacturing payroll growth was underwhelming.

Goldman Sachs added, "The labor market is softer than in 2019 and has yet to convincingly stabilize, which is the key reason we continue to foresee further consecutive cuts."

*(Peter Nurse, Ambar Warrick contributed to this article.)