Wall Street experienced a downturn on Monday, with the Dow Jones Industrial Average falling more than 200 points as technology stocks struggled amid investor caution ahead of key inflation data set to be released this week. The S&P 500 and Nasdaq Composite both retreated from their recent record highs, reflecting broader market concerns.
The S&P 500 closed down 0.61% at 6,052.85, while the Nasdaq Composite slipped 0.62% to end at 19,736.69. The Dow dropped by 240.59 points, or 0.54%, settling at 44,401.93.
A significant factor in the market’s decline was Nvidia’s stock, which fell approximately 2.6% after news broke that Chinese regulators are investigating the company for potential antitrust violations. Nvidia has been a key player in the artificial intelligence sector, with its shares surging over 180% this year alone.
Advanced Micro Devices (AMD) also faced challenges, closing down 5.6% following a downgrade from Bank of America, which cited increased competitive risks in the AI market against Nvidia’s dominance. Other tech giants like Meta Platforms and Netflix also saw their stocks struggle.
In addition to tech woes, Bitcoin prices retreated as investors shifted away from riskier assets after the cryptocurrency recently surpassed $100,000 for the first time.
This market pullback follows a strong performance last week, where both the S&P 500 and Nasdaq reached new record highs with gains of approximately 1% and 3.3%, respectively. The Dow was the only index to close lower for the week, down 0.6%.
Despite Monday’s decline, Sam Stovall, chief investment strategist at CFRA Research, noted that the overall market trend remains upward due to favorable seasonal factors. He acknowledged that news like Nvidia’s investigation could pose challenges but does not foresee it derailing the market’s advance through year-end.
Investors are now awaiting the November Consumer Price Index (CPI), expected to show a slight increase in inflation pressures. Economists predict a monthly rise of 0.3% and an annual increase of 2.7%, up from last month’s respective gains of 0.2% and 2.6%.
As Wall Street navigates these developments, traders are encouraged to stay informed on market trends and economic indicators that could influence future movements.
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