Stocks closed lower on Monday, exhibiting a minor retreat even as major indexes continued on course to secure their most impressive monthly gains in over a year, fueling hopes of a sustained November rally.
The Dow Jones Industrial Average (^DJI) experienced a marginal decline of approximately 0.2%, shedding over 50 points, while the S&P 500 (^GSPC), another key benchmark, also edged down by 0.2%. The Nasdaq Composite (^IXIC), heavily weighted towards technology stocks and predominantly in positive territory throughout the day, slid in late trading, ultimately closing approximately 0.1% lower.
This downturn occurred following a triumphant week for the market, with Friday marking the fourth consecutive weekly win for the major averages.
The prevailing enthusiasm for an impending halt to US interest rate hikes has been a driving force behind the robust rally witnessed throughout November. This surge in stock performance positions the Dow for its most robust monthly showing since October of the previous year, and for the Nasdaq and S&P 500, the best month since July 2022.
Indicating that the positive sentiment has not waned, the VIX, often referred to as Wall Street’s “fear gauge,” concluded Friday at its lowest level since January 2020. However, the market exhibited a more subdued mood on Monday as traders returned to work following the extended Thanksgiving holiday weekend.
Looking ahead, the momentum of the rally may face a challenge as a new reading on PCE inflation is scheduled for release on Thursday. The Personal Consumption Expenditures (PCE) index is the Federal Reserve’s preferred measure of consumer price pressures and could have a significant impact on market sentiment.
In the interim, investors are closely monitoring updates from Cyber Monday to gauge whether Americans are willing to open their wallets for holiday purchases amid potential financial constraints. Black Friday online sales demonstrated resilience, surging 7.5% year over year to a record $9.8 billion, while in-store totals also experienced a notable uptick.
In conclusion, Monday’s minor stocks retreat did little to overshadow the overall strength of the November rally, leaving investors cautiously optimistic as they navigate potential headwinds in the days ahead.
Source: Yahoo Finance
