The Nasdaq fell on Monday, while the benchmark S&P 500 bounced off a two-month low and eked out a slight gain as U.S. Treasury yields stayed elevated with investors dialing back expectations on the pace of rate cuts from the Federal Reserve.
Market Snapshot
The Dow Jones Industrial Average rose 358.67 points, or 0.86%, to 42,297.12, the S&P 500 gained 9.18 points, or 0.16%, to 5,836.22 and the Nasdaq Composite lost 73.53 points, or 0.38%, to 19,088.10.
Market Movers
Nvidia fell 2% to $133.23. The artificial intelligence chip maker has appealed to President-elect Donald Trump to reject new regulations from the Biden administration over AI technology. Meanwhile, analysts at HSBC reduced the price target on shares of the artificial intelligence chip maker to $185 from $195 but maintained a Buy rating on the stock. Fellow chip maker Micron Technology fell 4.5%.
Tesla rose 2.2% after falling earlier in the morning. Axios reported over the weekend that the electric vehicle company's regulatory credit sales were at risk from Trump's policies.
Moderna dropped 17% after the vaccine maker said it expects revenue of between $1.5 billion and $2.5 billion in 2025, below analysts' estimates of about $2.92 billion. The company also said it would speed up a previously announced cost-cutting program.
Intra-Cellular Therapies rose 34% to $127.19 after Johnson & Johnson confirmed it reached a deal to acquire the biopharmaceutical company. J&J will pay $132 a share in cash for Intra-Cellular, or $14.6 billion.
Edison International tumbled 12% as investigations were being conducted to determine whether equipment from subsidiary Southern California Edison contributed to the Hurst fire in Los Angeles.
Abercrombie & Fitch said it expects fiscal fourth-quarter net sales to increase between 7% and 8% from last year, better than past guidance calling for a 5% to 7% increase and in line with analysts' expectations for a 7% jump. The stock, however, was down 16%.
Macy's fell 8.2% after the department store said its holiday sales were softer than expected.
United States Steel rose by 6.2% following a report from CNBC that said Nucor and Cleveland-Cliffs were considering a joint bid for the steel company. The report came days after President Biden blocked a $55 all-cash bid from Japan's Nippon Steel on national security grounds.
SEALSQ Corp plunged over 40%, D-Wave Quantum Inc. fell 34%, Rigetti Computing slumped 32%, and other quantum-computing stocks tumbled after Meta Platforms CEO Mark Zuckerberg said quantum computing was far from being a "practical paradigm." Zuckerberg echoed statements made last week by Nvidia CEO Jensen Huang, who said "very useful quantum computers" were decades away.
Sage Therapeutics jumped 35% to $7.40 after confirming Biogen submitted an unsolicited, nonbinding proposal to acquire all of the outstanding Sage shares it doesn't already own for $7.22 a share.
JPMorgan rose 1.8% ahead of earnings, which are scheduled for Wednesday. The bank on Friday told employees it would implement a five-day in-office mandate in March, shifting from a three-day policy.
Wells Fargo, Citigroup, and BlackRock are also scheduled to issue their quarterly reports on Wednesday. Wells Fargo rose 0.8%, Citigroup was up 1.9%, and BlackRock declined 0.1%.
Market News
Apple, Samsung smartphone shipments fall in fourth quarter as China competition bites, IDC says
Smartphone shipments for Apple and Samsung declined in the fourth quarter globally, as they grapple with intense competition from Chinese companies including Xiaomi, according to preliminary data from the International Data Corporation (IDC) on Monday.
The global smartphone market rebounded strongly after two years of decline, with Chinese smartphone companies rapidly expanding their market share through aggressive growth in low-end devices and a strong focus on the domestic market.
EU Considers Expanding Probe Into Musk’s X, Digital Chief Says
The European Union is considering expanding its investigation into whether Elon Musk’s X social network breached its content moderation rulebook, the bloc’s top digital official said.
“We are currently assessing if the scope is large enough,” the European Commission’s Executive Vice President Henna Virkkunen told Bloomberg TV when asked about the ongoing probe X is facing under the EU’s Digital Services Act, or DSA.
