Overview of Monday’s Market Performance
On this Monday morning, Wall Street’s three major indices are experiencing moderate declines. The Dow Jones Industrial Average, consisting of 30 large company stocks, is down by 0.12% at 48,398.72 points. The S&P 500, which includes the most valuable companies, is also retreating by 0.15% to 6,819.13 points. The tech-heavy Nasdaq Composite index is losing 0.44% to 23,092.12 points.
Initial Positive Trend Reversal
The references began the session positively but quickly turned negative, following the recent downward trend driven by concerns over a potential AI bubble. Major tech companies like Amazon (-1.13%) and Microsoft (-0.96%) are among those experiencing declines.
Anticipation of Key Economic Data Releases
Following the Federal Reserve’s recent interest rate cut and a more dovish-than-expected speech by Fed Chair Jerome Powell, investors are eagerly awaiting signals for further adjustments in upcoming US inflation and labor market data.
Upcoming Economic Data Releases
On Tuesday, the nationally representative non-farm payrolls for October and November will be published. The October data was delayed due to the government shutdown. Additionally, unemployment benefit applications and inflation figures, which will be released this week, are crucial for market bets on the Federal Reserve’s interest rate trajectory.
Citigroup’s Outlook on S&P 500
In a note published on Friday, Citigroup set a target of 7,700 points for the S&P 500 by the end of 2026, driven by strong corporate performance and investments in artificial intelligence. This target implies a 12.7% gain from its last closing price.
Key Questions and Answers
- What are the major indices experiencing? Wall Street’s three primary indices—Dow Jones Industrial Average, S&P 500, and Nasdaq Composite—are all experiencing moderate declines on this Monday.
- Why are investors watching upcoming data releases closely? Investors are eagerly anticipating signals for further adjustments in US interest rates based on upcoming inflation and labor market data.
- What specific data will be released this week? The nationally representative non-farm payrolls for October and November, along with unemployment benefit applications and inflation figures, will be published this week.
- What is Citigroup’s outlook for the S&P 500? Citigroup has set a target of 7,700 points for the S&P 500 by the end of 2026, based on strong corporate performance and investments in artificial intelligence.
