US equity indexes fell amid declines in the communication services sector, while investors consolidated ahead of inflation-related reports this week.
The S&P 500 fell 0.4% to 6,066.1, with the Nasdaq Composite down 0.5% to 19,765.2 and the Dow Jones Industrial Average was 0.2% lower at 44,573.3 after midday Monday. The S&P 500 and the Nasdaq have been up consecutively for the past three weeks, making fresh record highs.
All sectors except energy, healthcare, and materials retreated intraday.
This week's economic releases include a couple of inflation-related reports for November -- the consumer price and the producer price indexes. The CPI data due Wednesday is among the last major datasets ahead of the Federal Reserve's Dec. 17-18 policy meeting and "could influence the bank's monetary policy path," a research note from D.A. Davidson said.
As of Monday morning, the probability of a 25 basis-point cut in interest rates in December stood at 86% in the US, compared with 62% a week ago, according to the FedWatch Tool. But, through December next year, the highest probability is the Fed will reduce its target rate to 3.75% to 4%, implying limited cuts from the current level.
Most US Treasury yields rose intraday, with the US 10-year up 3.3 basis points to 4.19% and the two-year climbed 2.6 basis points to 4.12%.
In company news, China's State Administration for Market Regulation is investigating Nvidia (NVDA) on suspicion of anti-monopoly law breaches, Bloomberg reported Monday, citing a report from China Central Television. Nvidia did not immediately reply to a request for comment from MT Newswires. Nvidia shares dropped 3.4% intraday, the worst performer on the Dow.
Advanced Micro Devices' (AMD) potential to gain market share is limited by higher competitive risks in artificial intelligence against Nvidia's "dominance" and increasing cloud preference for custom chips from Marvell Technology (MRVL) and Broadcom (AVGO), BofA Securities said Monday. Shares of Advanced Micro slid 4.4% intraday, among the worst performers on the Nasdaq.
West Texas Intermediate crude oil futures jumped 2.2% to $68.65 a barrel.
