US benchmark equity indexes experienced a decline on Monday as investors evaluated an inflation survey and anticipated the release of official price growth data for November later this week. The S&P 500 and the Nasdaq Composite both fell by 0.6%, closing at 6,052.9 and 19,736.7, respectively, retreating from the record levels reached the previous Friday.
Meanwhile, the Dow Jones Industrial Average decreased by 0.5% to 44,401.9. Among various sectors, financial stocks sustained the most significant drop, while health care and real estate managed to close higher. Oppenheimer Asset Management provided a projection indicating that the S&P 500 is expected to finish 2025 at a level of 7,100, which suggests an approximate 17% upside from the record close observed last Friday, reflecting ongoing strength in the economy and consumer sentiment.
In the realm of economic indicators, there was a slight increase in US consumers' inflation expectations in November, coupled with a marked improvement in optimism concerning financial conditions for the upcoming year, as highlighted by a survey from the Federal Reserve Bank of New York. Anticipated government data is set to unveil on Wednesday that US consumer inflation rose by 0.2% month-on-month, and 2.7% annually for the previous month, aligning with a Bloomberg-compiled consensus.
In October, the consumer price index for the US had already shown a rise of 0.2% month-over-month and an annual increase of 2.6%. The upcoming producer prices report for November is scheduled for release on Thursday. In terms of bond yields, the US 10-year yield rose by 4.2 basis points to reach 4.2% on Monday, while the two-year rate increased by 2.6 basis points to 4.12%. Turning to corporate updates, Comcast ($CMCSA) saw its shares plunge by 9.5%, making it the second-worst performer on both the S&P 500 and Nasdaq following the announcement that it is likely to lose over 100,000 broadband subscribers in the upcoming fourth quarter. Advanced Micro Devices ($AMD) shares fell by 5.6% after BofA Securities downgraded its stock rating from buy to neutral and adjusted its price target to $155 from $180.
BofA noted that AMD's prospects for gaining market share are constrained by escalating competitive challenges within the artificial intelligence sector against Nvidia's ($NVDA) stronghold, in addition to a rising preference in the cloud space for customized chips from competitors like Marvell Technology ($MRVL) and Broadcom ($AVGO). In significant acquisition news, beverage and snack food supplier Mondelez International ($MDLZ) is reportedly exploring a potential acquisition of chocolate manufacturer Hershey ($HSY), according to Bloomberg News, which cited unnamed sources.
Following this news, Hershey's shares surged nearly 11%, marking it as the leading gainer on the S&P 500, while Mondelez experienced a decline of 2.3%. In other developments, Enphase Energy ($ENPH) announced that owners of Enphase IQ batteries would be able to engage with NextEnergy's tariff program in the Netherlands as a result of a new partnership.
The announcement resulted in a 6.8% surge in Enphase's stock, making it the second-best performer on the S&P 500. The price of West Texas Intermediate crude oil rose by 1.4% to $68.14 per barrel on Monday. Gold prices climbed 0.8% to $2,680.90 per troy ounce, while silver saw an increase of 2.6% to $32.41 per ounce..