Nvidia shares decline due to an investigation in China, as investors await key inflation data and the Federal Reserve’s possible rate cut at its December meeting.
The Nasdaq Composite and the S&P 500 fall this Monday dragged by a drop of more than 2% in Nvidia. The technology component index is coming off its third consecutive week of gains, just ahead of the release of key inflation data scheduled for this week.
The Nasdaq lost 0.7%, while the S&P 500 fell 0.5%. The Dow Jones Industrial Average lost 0.2%.
Nvidia shares fell more than 3% after a Chinese regulator announced that it is investigating the company, a leader in AI chips, for a possible violation of the country’s antitrust law. While Tesla and Meta also give way strongly. Nvidia stock is a key indicator for AI trading, up about 180% in 2024.
Wall Street: the background
Last week, the broad-market S&P 500 and the tech-focused Nasdaq closed at new records on Friday, rising 1% and 3.3% respectively for the week. The Dow was the only one that failed to post a positive performance, closing the week down 0.6%.
These moves came after November’s jobs report showed stronger-than-expected growth, but not enough to dampen investor expectations that the Federal Reserve will cut interest rates this month. The CME FedWatch tool shows that markets are pricing in an 85% chance that the benchmark rate will be cut by a quarter point by the end of the December 18 meeting.
wall street markets bags usa
The Federal Reserve is now in a period of silence ahead of the monetary policy meeting, but investors will get one last piece of information on its decision-making with key inflation data due this week.
The consumer price index for November, due to be released on Wednesday, is expected to show a slight increase in price pressures. Economists surveyed by Dow Jones expect a monthly and annual increase of 0.3% and 2.7%, respectively. This would be an increase from 0.2% and 2.6% the previous month.
Source: Ambito
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