US equity indexes displayed mixed results after midday on Monday, with the Dow Jones Industrial Average underperforming against the S&P 500 and Nasdaq Composite, influenced by gains in the technology and consumer discretionary sectors. The S&P 500 rose 0.4% to achieve a new milestone of 6,073.2, while the Nasdaq climbed 0.9% to reach 20,113.9.
Conversely, the Dow slipped less than 0.1% to close at 43,782.5, with energy stocks experiencing the most significant decline during the trading session. While the S&P 500 Index's price/earnings ratio shows elevated figures in comparison to historical data, it is deemed 'reasonable given the evolution of the index as well as our expectations for future earnings growth,' a note from Wells Fargo Investment Institute highlights. 'Current stock valuations are not indicative of a bubble, and investors should not allow an above-average P/E ratio to deter them from participating in the ongoing bull market anticipated in 2025.' The note from WFII elaborates that pullbacks in the range of 5% to 10% are common, and during such scenarios, 'we are likely to identify a buying opportunity.' The 10-year US Treasury yield remained virtually unchanged at 4.40%, marking the highest rate in approximately three weeks. In notable company news, Nasdaq announced on Friday that MicroStrategy ($MSTR) will be incorporated into the Nasdaq-100 index prior to trading slated for December 23.
The company, which experienced a 4% intraday rise in share value, stands out as the largest corporate possessor of bitcoin and is perceived by various investors as a proxy for the cryptocurrency market. Additionally, West Texas Intermediate crude oil futures saw a decline of 1.1%, settling at $70.53 per barrel..