Source: Sharecast
The Dow fell for the third straight session, finishing 1.2% lower at 46,590.24 – its lowest since 17 October.. The benchmark has dropped 3.5% since hitting an all-time high last Wednesday.
The S&P 500 dropped 0.9% to 6,672.41, while the Nasdaq dropped 0.8% to 22,708.07 – with both also trading at or close to one-month lows.
AJ Bell's head of financial analysis Danni Hewson said the downbeat start to the week was caused by nervousness ahead of two key risk events for markets: semiconductor giant Nvidia's third-quarter results on Wednesday evening and the delayed September non-farm payrolls report due on Thursday.
For Nvidia, sentiment surrounding the company remains under pressure amid ongoing concerns about stretched valuations in the AI and chip sectors, while attention will also be on company guidance for the fourth quarter and beyond, after chief executive Jensen Huang recently flagged $500bn of orders.
“Just meeting expectation won’t be enough – investors want the spectre of that AI bubble popping blown clean away. Nvidia will need to surprise on the upside and provide an update that leaves people in no doubt about the outlook for the sector," Hewson said.
“For the jobs data, those numbers need to come in at just the right temperature that even Goldilocks would be satisfied. Too good and any hope of a December rate cut has probably bitten the dust, too bad and nerves about how the US economy is holding up could unsettle already nervous investors.”
Adding to the uncertainty on Monday was Federal Reserve vice chair Philip Jefferson, who called on policymakers "to proceed slowly" with further policy easing, while governor Christopher Waller said the central bank should cut rates.
Despite the negative moves on Monday, analysts at Morgan Stanley said in a research note that they now expect the S&P 500 to hit 7,800 by December 2026, which is around 16% upside from current levels.
Bank, tech stocks under pressure
Stocks across the banking sector were firmly out of favour as macro concerns weighed heavily, with giants Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo all falling around 2% or more.
Tech stocks were also falling, including five of the Magnificent Seven stocks: Apple, Microsoft, Amazon.com, Microsoft and Meta.
However, shares in Google-parent Alphabet sparked after Warren Buffett’s Berkshire Hathaway took a stake worth nearly $5bn in the US tech firm. A filing late on Friday showed the closely-followed investment giant had acquired 17.85m shares as of 30 September.
Meanwhile, Tesla rebounded after recent falls after Stifel hiked its target price from $483 to $508 an reiterated a 'buy' rating', hailing the potential of its fully autonomous vehicle tech and Robotaxi initiatives.
American pharma and medical giant Johnson & Johnson was in demand after the $3.05bn acquisition of clinical-stage biotech company Halda Therapeutics in hopes that the company can revolutionise the treatment of cancer.
Bubble wrap maker Sealed Air was lower despite the news that it has agreed to be bought by private investment firm CD&R in a $10.3bn cash deal. Under the terms of the agreement, Sealed Air shareholders will receive $42.15 per share in cash, a premium to its average over recent months but only marginally higher than current levels after a surge in the stock late last week.
Dow Jones - Risers
Johnson & Johnson (JNJ) $199.58 1.86%
Amgen Inc. (AMGN) $341.71 1.48%
Walmart Inc. (WMT) $102.95 0.46%
Microsoft Corp. (MSFT) $503.29 0.00%
Dowdupont Inc. (DWDP) $0.00 0.00%
Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%
Merck & Co. Inc. (MRK) $92.86 -0.06%
Walt Disney Co. (DIS) $105.69 -0.10%
Verizon Communications Inc. (VZ) $41.01 -0.12%
Cisco Systems Inc. (CSCO) $77.78 -0.28%
Dow Jones - Fallers
Dow Chemical Co. (DOW) $21.67 -5.49%
American Express Co. (AXP) $341.25 -4.46%
International Business Machines Corporation (CDI) (IBM) $297.17 -2.79%
Salesforce.Com Inc. (CRM) $237.03 -2.72%
Intel Corp. (INTC) $34.71 -2.28%
Nike Inc. (NKE) $62.90 -1.98%
Goldman Sachs Group Inc. (GS) $775.56 -1.94%
Apple Inc. (AAPL) $267.46 -1.82%
Chevron Corp. (CVX) $154.82 -1.78%
Boeing Co. (BA) $191.81 -1.39%
S&P 500 - Risers
Alphabet Inc. Class A (GOOGL) $285.02 3.11%
Alphabet Inc. Class C (GOOG) $285.60 3.11%
Western Digital Corp. (WDC) $162.45 2.93%
NextEra Energy Inc. (NEE) $85.75 2.23%
Albemarle Corp. (ALB) $117.70 2.22%
Consolidated Edison Inc. (ED) $103.85 2.15%
Duke Energy Corp. (DUK) $125.18 2.01%
Centene Corp. (CNC) $37.08 1.92%
Johnson & Johnson (JNJ) $199.58 1.86%
Welltower Inc (WELL) $197.27 1.78%
S&P 500 - Fallers
Expedia Group Inc. (EXPE) $244.16 -7.75%
Hewlett Packard Enterprise (HPE) $21.23 -7.01%
Sl Green Realty Corp. (SLG) $44.67 -6.88%
FMC Corp. (FMC) $12.95 -6.83%
HP Inc (HPQ) $22.87 -6.77%
Carmax Inc. (KMX) $32.11 -6.74%
Under Armour, Inc. (UA) $4.06 -6.67%
Alaska Air Group Inc. (ALK) $39.11 -6.14%
Under Armour Inc. Class A (UAA) $4.26 -5.96%
Mosaic Company (MOS) $24.52 -5.87%
Nasdaq 100 - Risers
Alphabet Inc. Class A (GOOGL) $285.02 3.11%
Alphabet Inc. Class C (GOOG) $285.60 3.11%
Western Digital Corp. (WDC) $162.45 2.93%
Verisk Analytics Inc. (VRSK) $219.43 1.66%
Regeneron Pharmaceuticals Inc. (REGN) $704.31 1.56%
Amgen Inc. (AMGN) $341.71 1.48%
Asml Holdings N.V. (ASML) $1,020.00 1.29%
Seagate Technology Plc (STX) $261.38 1.23%
Applied Materials Inc. (AMAT) $228.71 1.19%
Tesla Inc (TSLA) $408.92 1.13%
Nasdaq 100 - Fallers
Expedia Group Inc. (EXPE) $244.16 -7.75%
Booking Holdings Inc. (BKNG) $4,801.91 -4.88%
QUALCOMM Inc. (QCOM) $166.75 -4.16%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $509.57 -3.73%
Align Technology Inc. (ALGN) $132.61 -3.30%
American Airlines Group (AAL) $12.34 -3.29%
Idexx Laboratories Inc. (IDXX) $669.00 -3.03%
Qvc Group Inc Series A (QVCGA) $6.37 -2.90%
Check Point Software Technologies Ltd. (CHKP) $191.91 -2.84%
Texas Instruments Inc (TXN) $154.99 -2.72%