The US benchmark equity indexes demonstrated a positive performance on Monday, reflecting traders' assessments of the most recent economic indicators. The Nasdaq Composite surged by 1% to reach 19,764.9, while the S&P 500 climbed 0.7% to settle at 5,974.1. The Dow Jones Industrial Average saw a modest increase of 0.2%, closing at 42,907.
Among sector performances, communication services emerged as the leading gainers, contrasting with consumer staples that posted the largest decline. Market operations will experience an early closure on Tuesday and a complete shutdown on Wednesday in observance of the Christmas holiday. In terms of economic developments, newly constructed home sales in the US displayed a slower growth rate than anticipated for November, with median prices nationally experiencing cooling both on a sequential and annual basis, as per government statistics.
Oxford Economics forecasts that sales could register a 'small improvement' in 2025. This optimism stems from expectations indicating a slight decline in mortgage rates, along with a supportive economic landscape and job market. Consumer confidence in the US took a hit this month, while annual inflation perceptions remained at their lowest since March 2020, according to the Conference Board.
The expectations index saw a decline of 12.6 points, landing at 81.1, which is just above the 80-point indicator known to typically signal impending recession risks. Dana Peterson, the Conference Board's chief economist, remarked, "The recent rebound in consumer confidence was not sustained in December." Moreover, data from the government revealed a significant drop in US durable goods orders in November, mainly driven by the transportation equipment sector. In bond market movements, the US 10-year yield rose by 6.5 basis points to settle at 4.59% on Monday, while the two-year yield increased slightly by 2.8 basis points to reach 4.34%. Turning to corporate news, shares of chip-manufacturing powerhouse Nvidia ($NVDA) saw a notable rise of 3.7%, marking the most significant gain on the Dow.
Concurrently, Broadcom ($AVGO) recorded a 5.5% increase in stock price, the highest on the S&P and the second-most substantial on the Nasdaq. Advanced Micro Devices ($AMD) also advanced by 4.5%, placing it among the top gainers on both the S&P and Nasdaq indexes. Hyatt Hotels ($H.US) has entered into exclusive negotiations to explore the possibility of acquiring Playa Hotels & Resorts ($PLYA), alongside several other options considered for enhancing its portfolio in the resort sector across Mexico, Jamaica, and the Dominican Republic.
Following this news, Playa shares surged by 29%, while Hyatt's stock dipped by 1.4%. In the cryptocurrency realm, MicroStrategy ($MSTR) made headlines by acquiring 5,262 bitcoins for a substantial $561 million in cash during the period from December 16 to 22. Following this acquisition, the company's shares plunged by 8.8%. In a noteworthy legal development, the US Consumer Financial Protection Bureau has filed a lawsuit against retail giant Walmart ($WMT) and fintech company Branch Messenger.
The allegations assert that these firms compelled delivery drivers to utilize expensive deposit accounts as a prerequisite for receiving their payments, leading to a 2.1% decline in Walmart's shares – the largest drop on the Dow. Meanwhile, West Texas Intermediate crude oil prices remained stable at approximately $69.49 per barrel, with gold reflecting a decrease of 0.7% to $2,626.90 per troy ounce, while silver saw a slight increase of 0.9% to reach $30.23 per ounce..