Stocks closed lower due to profit-taking and geopolitical risks

From Nasdaq: 2024-12-09 18:10:35

The S&P 500, Dow Jones, and Nasdaq all closed lower on Monday amid long liquidation and profit-taking. Geopolitical risks in the Middle East added pressure. M&A activity increased with Omnicron Group acquiring Interpublic Group for $13.3 billion. US economic news was bearish, with wholesale trade sales declining unexpectedly in October.

Global equity markets received support from a shift in Chinese monetary policy towards a “moderately loose” strategy. The markets are anticipating an 86% chance of a -25 bp rate cut at the upcoming FOMC meeting. Overseas stock markets settled mixed, with the Euro Stoxx 50 rising and China’s Shanghai Composite falling.

Interest rates saw 10-year T-notes close down as WTI crude oil prices rose, impacting inflation expectations. European government bond yields were mixed. The Eurozone Dec Sentix investor confidence index fell unexpectedly. Swaps are pricing in a 100% chance of a -25 bp rate cut by the ECB.

US stock movers included Nvidia down over -2% due to an anti-monopoly probe in China. Omicron Group and Comcast both closed down over -9%. Positive performers included Hershey, up over +11%, after reports of a potential acquisition by Mondelez International. Workday closed up over +4% after being added to the S&P 500.

Chinese stocks rallied on news of further stimulus, with PDD Holdings leading gainers in the Nasdaq 100. VeriSign closed up over +4% after an upgrade by Baird. Newell Brands and health insurance stocks also saw gains. Macy’s closed up over +1% after reports of activist investor involvement.

Upcoming earnings reports on 12/10/2024 include AutoZone Inc, Ferguson Enterprises Inc, GameStop Corp, and Ollie’s Bargain Outlet Holdings. The author did not hold positions in mentioned securities. All information is for informational purposes only.



Read more at Nasdaq: Stocks Settle Lower Ahead of US Inflation News