U.S. stock markets had a mixed start to the week, with the Dow Jones Industrial Average dipping by 0.2% while the S&P 500 and Nasdaq Composite showed resilience, rising by 0.3% and 0.7% respectively.
This comes after a challenging week for all three major indexes, which experienced declines following the Federal Reserve's tempered outlook on future interest rate cuts. The Dow has faced three consecutive weekly losses, while the S&P 500 has seen two weeks of declines. The Nasdaq Composite, which had enjoyed a four-week winning streak, was particularly affected by the Fed's recent announcements, leading to a sell-off. The mixed performance of the indexes reflects broader uncertainty in the economic landscape.
Eli Lilly saw an increase in its share price following the approval of its Zepbound weight-loss drug for treating sleep apnea. Palantir Technologies experienced volatility on its first day as a component of the Nasdaq 100. Big Tech stocks exhibited a mixed performance, with Tesla and Nvidia gaining nearly 3%, while Apple and Microsoft experienced marginal declines.
Economic data released on Monday revealed a surprising pullback in consumer confidence for December, alongside disappointing new home sales figures for November. Treasury yields continued to rise, reaching their highest level since May. The dollar has strengthened, trading at its highest level since 2022 against most major currencies. Gold and oil futures have seen declines in the commodities market. Bitcoin has been trading around $93,000 after recently slipping below the $100,000 mark.
Market participants will be closely monitoring economic indicators and corporate earnings reports as the week progresses.