The Nasdaq Composite fell on Monday after the benchmark posted its third straight winning week, ahead of key inflation data due out this week. YINN rose 20%.
The tech-heavy Nasdaq shed 0.3%, and the S&P 500 lost 0.2%. The Dow Jones Industrial Average outperformed, advancing 47 points, or 0.1%.
Nvidia shares dropped more than 3% on the heels of a Chinese regulator announcing that it’s investigating the AI chip darling for potentially violating the country’s antimonopoly law.
Last week, the broad market S&P 500 and tech-heavy Nasdaq closed at fresh records Friday, rising 1% and 3.3% for the week, respectively. The Dow was the lone laggard, closing the week down 0.6%.
Those moves come after the November jobs report showed stronger-than-expected growth, but not so much strength as to dent investor hopes the Federal Reserve will lower interest rates this month. The CME FedWatch Tool shows markets pricing in an 85% chance the target rate will be lowered by a quarter point at the conclusion of the Dec. 18 meeting.
“Everything else is working exactly the way the Fed wants,” Wharton School’s finance professor Jeremy Siegel told CNBC’s “Closing Bell” on Friday. “I think we’re going to have one rate cut on that December 18 meeting, but truthfully, I think only two or three rate cuts next year. I think this strength could last.”
The Fed is now in a blackout period ahead for commentary of its policy-setting meeting, but investors will get one final piece of insight into their decision-making with key inflation data set to be released this week.
The November consumer price index, due out Wednesday, is expected to show a slight uptick in pricing pressures. Economists polled by Dow Jones expect a 0.3% and 2.7% monthly and yearly increase, respectively. That would be up from 0.2% and 2.6%, respectively, from the prior month.
On Monday, investors await October wholesale inventories data, due at 10 a.m. ET.
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