Wall Street Closes with Losses; Nvidia’s Decline Takes Center Stage
Investors are gearing up for key inflation reports set to be released on Wednesday and Thursday, ahead of the Federal Reserve’s final policy meeting of the year next week.
All three major Wall Street indices posted losses to start the week, weighed down by a notable decline in Nvidia shares. The Dow Jones Industrial Average, which tracks 30 blue-chip companies, fell 0.54% to 44,401.93 points. The SPX, representing the largest corporations, slipped 0.61% to 6,052.85 points, while the Nasdaq Composite declined 0.62% to 19,736.69 points.
Nvidia shares tumbled 2.55% after reports that China’s competition regulator suspects the company violated antitrust laws in its 2020 acquisition of an Iranian firm. The semiconductor giant’s slump also dragged down chipmaker Advanced Micro Devices (AMD), which plunged 5.56% after Bank of America downgraded its rating from “buy” to “neutral.”
Federal Reserve Expectations
Despite these movements, the spotlight this week remains on upcoming inflation data. The Consumer Price Index (CPI) report is due Wednesday, followed by the Producer Price Index (PPI) on Thursday. These figures will heavily influence market expectations ahead of the Federal Reserve’s December 17-18 meeting.
Market bets for a 25-basis-point rate cut at the upcoming Fed meeting surged above 85% after Friday’s data showed the unemployment rate rose to 4.2% in November, signaling easing labor market conditions.
Notable Movers
In other notable moves, Hershey shares soared 10.85% following reports that Mondelez is exploring a potential acquisition offer for the chocolate company. Meanwhile, the advertising sector saw significant activity as Omnicom Group (-10.25%) announced plans to acquire Interpublic Group of Companies (+3.55%). The deal, expected to close in the second half of 2025, marks a major shakeup in the industry.
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