On Monday, US benchmark equity indexes exhibited positive momentum as traders closely examined the latest economic indicators. The Nasdaq Composite demonstrated a notable rise of 1%, closing at 19,764.9, while the S&P 500 advanced by 0.7%, finishing at 5,974.1. The Dow Jones Industrial Average saw a modest increase of 0.2%, concluding the day at 42,907.
The communication services sector led the rally, outperforming other sectors, while consumer staples faced the most significant decline. As market activity intensified, it's important to note that US markets are set to close early on Tuesday and will remain closed on Wednesday to observe the Christmas Day holiday. Turning to the economic landscape, recent data revealed that new-home sales in the US experienced a slower growth rate than anticipated in November.
Additionally, median prices across the nation exhibited a cooling trend both sequentially and year-over-year, as reported by government statistics. According to Oxford Economics, there is an expectation of a "small improvement" in sales by 2025, driven by predictions of a slight decline in mortgage rates and a supportive economic environment coupled with a robust job market. In terms of consumer sentiment, recent findings indicate a dip in US consumer confidence this month, while annual inflation perceptions remain at their lowest since March 2020, according to the Conference Board.
This is evidenced by a decline in the expectations index by 12.6 points, settling at 81.1, which is just above the crucial threshold of 80 that typically signals an impending recession. Dana Peterson, Chief Economist of the Conference Board, commented, "The recent rebound in consumer confidence was not sustained in December." On the manufacturing side, US durable goods orders fell more sharply than anticipated in November, primarily due to a significant downturn in transportation equipment, as disclosed by government data. In the bond market, the US 10-year yield escalated by 6.5 basis points to 4.59%, whereas the two-year rate saw an increase of 2.8 basis points, settling at 4.34%. Shifting focus to company-specific news, shares of the chip-making behemoth Nvidia saw an uptick of 3.7%, making it the leading performer on the Dow.
Meanwhile, Broadcom emerged as the top performer on the S&P 500 and the second-best on the Nasdaq, experiencing a rise of 5.5%. Advanced Micro Devices also had a commendable day, registering a 4.5% gain on both the S&P 500 and Nasdaq indices. In noteworthy corporate developments, Hyatt Hotels has entered into exclusive negotiations to explore the possibility of acquiring Playa Hotels & Resorts, in addition to considering other options for the owner of resorts situated in Mexico, Jamaica, and the Dominican Republic.
As a result of this news, Playa shares witnessed a substantial jump of nearly 29%, while Hyatt’s stock dipped by 1.4%. MicroStrategy disclosed that it has acquired 5,262 bitcoins valued at approximately $561 million in cash between December 16 and December 22. Following this announcement, the company's shares plummeted by 8.8%, marking the steepest decline on the S&P 500. The US Consumer Financial Protection Bureau has initiated a lawsuit against retail giant Walmart and financial technology firm Branch Messenger.
The lawsuit alleges that they compelled delivery drivers to utilize expensive deposit accounts for compensation. Consequently, Walmart's shares fell by 2.1%, making it the worst performer on the Dow. In commodity markets, West Texas Intermediate crude oil increased by 0.2%, reaching $69.58 per barrel on Monday.
In precious metals, gold experienced a decline of 0.6%, settling at $2,628.60 per troy ounce, while silver gained 0.9%, trading at $30.23 per ounce..