The S&P 500, Dow Jones, and Nasdaq all closed lower on Monday. Energy stocks dropped as crude prices fell, and cryptocurrency-exposed stocks slumped after Bitcoin’s decline. Stock indexes hit multi-week lows ahead of the November payrolls report. Artificial intelligence spending concerns weighed on tech stocks like Broadcom and Oracle, prompting a rotation out of the sector.

Dovish Fed comments supported stocks on Monday, with officials noting a restrictive policy stance. US economic news was mixed, with the Empire manufacturing survey contracting unexpectedly while the NAHB housing market index rose. Weaker-than-expected Chinese economic data also added to global growth concerns, with industrial production and retail sales missing expectations.

This week’s focus is on US economic data, including nonfarm payrolls, retail sales, and manufacturing PMI. The markets are pricing in a 22% chance of a Fed rate cut in January. Overseas markets closed mixed, with gains in Europe but losses in China and Japan. Interest rates were steady, with T-notes rising on dovish Fed comments but pressured by a steepening yield curve.

European bond yields fell, while Eurozone industrial production rose in October. Swaps show no expected rate cut by the ECB this week. Cryptocurrency-exposed stocks like Riot Platforms and Galaxy Digital tumbled, while energy stocks like Devon Energy and APA Corp also retreated. Stock movers included ServiceNow, ARM Holdings, and Builders FirstSource, among others.

Adobe and Immunome closed lower and higher, respectively, on Monday. ZIM Integrated Shipping Services and Bristol-Myers Squibb posted gains, with the latter upgraded by Bank of America. Hershey Co. also rose on an upgrade from Morgan Stanley. Corebridge Financial and KLA Corp closed higher after S&P Dow Jones and Jeffries upgrades, while Charles River Laboratories saw a price target raise from JPMorgan.

Earnings reports for December 16, 2025, include CSP Inc, Golden Matrix Group Inc, Immersion Corp, Lennar Corp, RCI Hospitality Holdings Inc, and Worthington Enterprises Inc. Author Rich Asplund did not hold positions in any mentioned securities. The views expressed are his own and not Nasdaq, Inc.’s.

Read more at Nasdaq: Stocks Fall Ahead of US November Payroll Report