US benchmark equity indexes showed a mostly positive intraday performance as markets reacted to the latest economic indicators. The Nasdaq Composite climbed 0.8% to reach 19,719.8 by midday on Monday, while the S&P 500 gained 0.4%, elevating to 5,957.1. However, the Dow Jones Industrial Average saw a slight decline of 0.1%, settling at 42,803.3.
Among the sectors, communication services led the gains, while consumer staples registered the most significant decline. As the trading week continues, US markets are set to close early on Tuesday and will remain closed on Wednesday in observance of the Christmas Day holiday. Shifting focus to economic developments, the Conference Board reported a notable drop in US consumer confidence, which fell by 8.1 points to 104.7 this month.
The expectations index experienced an even sharper decline, sinking 12.6 points to 81.1, just shy of the worryingly low 80 threshold that typically signals a recession. Dana Peterson, Chief Economist at the Conference Board, remarked, "The recent rebound in consumer confidence was not sustained in December.
While weaker consumer perceptions of the current situation and future expectations contributed to the decline, the expectations component witnessed the steepest drop." In housing news, sales of new single-family homes in the US saw a sequential increase of 5.9%, reaching a seasonally adjusted annual rate of 664,000 in November, slightly below a Bloomberg-compiled consensus which anticipated a 670,000 figure. Further economic data revealed that US durable goods orders dipped more than analysts had projected in November, driven primarily by a downturn in transportation equipment orders, according to government reports. On interest rates, the US 10-year yield rose by 5.4 basis points, hitting 4.58% intraday, while the two-year rate increased 2.6 basis points, reaching 4.34%. In corporate news, shares of Nvidia, the chip-making titan, rocketed up 3%, making it the top gainer on the Dow.
Broadcom was the standout performer on the S&P 500, also taking a solid second-place finish on the Nasdaq with a gain of 5.4%. Meanwhile, Advanced Micro Devices and Intel figured among the leading gainers on both the S&P 500 and the Nasdaq. Hyatt Hotels is reportedly in exclusive negotiations concerning a potential acquisition of Playa Hotels & Resorts, evaluating various options for its resorts located in Mexico, Jamaica, and the Dominican Republic.
Playa's stock surged nearly 28% following this news, contrasted by a 2.4% decline in Hyatt's shares. In a significant move within the cryptocurrency sector, MicroStrategy announced it has acquired 5,262 bitcoins at a total cost of around $561 million from December 16 to December 22. Following the announcement, the company’s stock slumped by 5.8%, marking the sharpest drop on the S&P 500. Additionally, Nordstrom has agreed to transition into private ownership by members of its founding family alongside Mexican retailer El Puerto de Liverpool.
This transaction is valued at approximately $6.25 billion, resulting in a 1.8% decline in Nordstrom shares. In commodity news, West Texas Intermediate crude oil recorded a 0.6% decrease, trading at $69.08 a barrel. On the precious metals front, gold prices fell by 0.6% to $2,628.70 per troy ounce, while silver saw a gain of 0.8%, reaching $30.19 per ounce..