US Markets Dip as Inflation Concerns Loom Amid Mixed Signals
9 months ago

US benchmark equity indexes fell Monday as markets assessed an inflation survey and awaited official price growth data for November due later in the week. The S&P 500 and the Nasdaq Composite dropped 0.6% each to 6,052.9 and 19,736.7, respectively, both retreating from Friday's record closing levels.

The Dow Jones Industrial Average lost 0.5% to 44,401.9. Among sectors, financials saw the steepest decline. Only health care and real estate closed higher. The S&P 500 is expected to end 2025 at a 7,100 level, suggesting a roughly 17% upside from Friday's close amid continued economic and consumer resilience, Oppenheimer Asset Management said in a Monday note to clients. In economic news, US consumers' inflation expectations rose slightly in November, while optimism regarding year-ahead financial situations improved "considerably," as indicated by a survey from the Federal Reserve Bank of New York. Government data are expected to show Wednesday that US consumer inflation rose 0.2% sequentially and 2.7% annually last month, per a Bloomberg-compiled consensus.

In October, the US consumer price index increased 0.2% month on month and 2.6% on an annual basis. The official producer prices report for November is scheduled for release on Thursday. The US 10-year yield gained 4.8 basis points to 4.20% Monday, while the two-year rate added 3.1 basis points to 4.13%. In company news, Comcast ($CMCSA) shares tumbled 9.5%, the second-worst performer on the S&P 500 and the Nasdaq, after the company indicated it will likely lose more than 100,000 broadband subscribers in the fourth quarter. Advanced Micro Devices ($AMD) shares dropped 5.6% as BofA Securities downgraded its rating on the chipmaker's stock to neutral from buy and reduced its price objective to $155 from $180. AMD's potential to gain market share is limited by higher competitive risks in artificial intelligence against Nvidia's ($NVDA) "dominance" and increasing cloud preference for custom chips from Marvell Technology ($MRVL) and Broadcom ($AVGO), BofA stated in a note to clients. Beverage and snack food company Mondelez International ($MDLZ) is exploring a potential acquisition of chocolate maker Hershey ($HSY), as reported by Bloomberg News, citing unnamed sources.

Hershey's shares jumped nearly 11%, making it the top gainer on the S&P 500, while Mondelez decreased 2.3%. Enphase Energy ($ENPH) announced that owners of Enphase IQ batteries will be able to participate in NextEnergy's tariff program in the Netherlands as part of a new collaboration between the companies.

Enphase shares rose 6.8%, becoming the second-best performer on the S&P 500. West Texas Intermediate crude oil increased 1.4% to $68.14 a barrel Monday. Gold advanced 0.9% to $2,683 per troy ounce, while silver increased 2.7% to $32.46 per ounce..

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