In midday trading on Monday, US benchmark stock indexes experienced a decline, further extending losses from the preceding session. The Nasdaq Composite Index decreased by 0.9%, settling at 19,548.3. The S&P 500 Index followed closely behind, declining by 0.8% to reach 5,922.3, while the Dow Jones Industrial Average also fell by 0.8%, landing at 42,657.3. The materials and consumer discretionary sectors struggled the most, leading the decliners, whereas the energy sector stood out as the only gainer during intraday trading.
In the housing market, pending home sales reported an increase of 2.2% in November. This outcome surpassed the 0.8% growth anticipated in a survey conducted by Bloomberg, following a prior 1.8% boost in October. According to the National Association of Realtors, the monthly sales index surged by 6.9% from November 2023, marking its highest point since February 2023 at a reading of 79.0. On a different note, the Institute for Supply Management's Chicago Purchasing Managers' Index (PMI) indicated a downturn, dropping to 36.9 in December from a previous reading of 40.2 in November, contrasted with an expected 42.7 based on a Bloomberg survey, signaling economic contraction.
Turning to company-specific news, shares of Boeing ($BA) saw a drop of 1.8% in recent trading. This decline followed various media reports mentioning that South Korea's transport ministry plans to conduct inspections on Boeing aircraft operated by all airlines in the country. This decision comes in the wake of a tragic incident involving the crash of a Boeing 737-800 operated by Jeju Air, which occurred on Sunday at Muan International Airport, resulting in the loss of 179 lives. In contrast, Nvidia ($NVDA) announced the completion of its acquisition of the AI software firm Run:ai, as stated in a blog post released on Monday.
On the news, Nvidia’s shares rose by 1.2% around midday, reflecting a positive market response. In terms of treasury yields, the US 10-year Treasury yield fell by 6.6 basis points to 4.55%, while the two-year rate decreased by seven basis points to 4.26%. The US Dollar Index experienced a 0.2% increase to reach 108.24, alongside West Texas Intermediate crude oil, which rose by 1.1% to $71.41 per barrel.
Conversely, gold prices declined by 0.7% to $2,614 per ounce, and silver prices fell by 1.9%, settling at $29.41 per ounce. Lastly, both the NYSE and the Nasdaq announced a shutdown of trading on January 9 in honor of a National Day of Mourning commemorating the passing of former President Jimmy Carter.
Additionally, the Securities Industry and Financial Markets Association advised an early market closure at 2 PM ET on that day for bond market trading..