Wall Street Slips on Quiet Monday as Traders Await Key Economic Data

Wall Street moved quietly on Monday as traders awaited key U.S. economic data that could shape the Federal Reserve’s next interest‑rate decision.

Market Overview

The S&P 500 slipped 0.2%, falling 10.90 points to 6,816.51, even though most stocks in the index rose. The Dow Jones Industrial Average dropped 41.49 points, or 0.1%, to 48,416.56, and the Nasdaq composite fell 137.76 points, or 0.6%, to 23,057.41.

AI Stocks: A Mixed Bag

Artificial‑intelligence names were a key factor keeping the indexes from falling further. Nvidia, the chip maker that has become the face of the AI boom, added 0.7% and was one of the strongest forces pushing the S&P 500 higher after a 4.1% drop last week. In contrast, Oracle sank another 2.7% following its 12.7% tumble last week, its worst decline in more than seven years. Broadcom fell 5.6%.

The sector’s earlier surges had been the main driver of the U.S. market’s rally to record highs, but worries that the billions of dollars flowing into chips and data centers may not generate a big enough payoff are causing cracks.

Economic Data on the Horizon

Wall Street’s focus this week is on a series of U.S. economic updates that could signal how the Fed will move rates. On Tuesday, the jobs report for November is due. Economists expect the report to show that employers added 40,000 more jobs than they cut during the month. Thursday will bring an inflation update, with expectations that U.S. consumers paid prices that were 3.1% higher in November than a year before.

These data points are under intense scrutiny because the Fed is trying to decide whether a slowing job market or high inflation poses the bigger threat. Moving rates to address one problem could worsen the other in the short term.

The market hopes that the job market will weaken only slightly, enough to prompt the Fed to lower rates but not so much that a recession follows. Wall Street loves lower rates because they can boost the economy and investment prices, even if they may also worsen inflation.

> “With the Fed still appearing to be more focused on labor‑market weakness than inflation, we’re likely facing a ‘bad news is good’ scenario for the jobs report,” according to Chris Larkin, managing director, trading and investing, at E‑Trade from Morgan Stanley.

> “As long as the numbers don’t suggest employment is falling off a cliff,” that would mean the market would likely welcome soft numbers, he said.

The spotlight will be brightest on the unemployment rate, not the overall job growth numbers, because the latter is feeling downward pressure from a drop‑off in immigrant workers. Economists expect Tuesday’s report to show the unemployment rate at 4.4%, which would keep it near its highest and worst level since 2021.

Treasury Yields and Manufacturing Signals

Treasury yields eased a bit ahead of the updates. A report earlier on Monday morning also said that a measure of manufacturing strength in New York state unexpectedly weakened, when economists expected to see continued growth. The yield on the 10‑year Treasury slipped to 4.18% from 4.19% late Friday.

iRobot’s Bankruptcy Shock

Shares of iRobot tumbled nearly 73% to $1.18 after the maker of Roomba vacuums said holders of its stock will likely face a total loss after it filed for Chapter 11 bankruptcy protection over the weekend. The company has reached an agreement with its primary contract manufacturer, Picea, to buy it through a process supervised by a U.S. bankruptcy court.

International Markets

In markets abroad, indexes rose in Europe following weaker finishes in Asia. Hong Kong fell 1.3% and Shanghai slipped 0.6% after the Chinese government reported a drop in investment in factory equipment, infrastructure and other fixed assets, signaling that demand in the world’s second‑largest economy remains weak.

Japan’s Nikkei 225 sank 1.3% after a quarterly survey of big manufacturers by the central bank showed a slight improvement in sentiment. That could encourage the Bank of Japan to go ahead with a hike to interest rates.

Key Takeaways

• The S&P 500 edged down 0.2% on a quiet Monday, while Nvidia’s rise helped offset broader weakness.
• The Fed’s upcoming jobs and inflation reports will be pivotal in determining whether rates rise or fall.
• iRobot’s bankruptcy filing sent its shares crashing nearly three‑quarters, illustrating the volatility in tech‑hardware stocks.

Wall Street’s eyes remain on the forthcoming data releases, as investors weigh the potential for rate changes that could either buoy the market or trigger a slowdown. The market’s reaction will hinge on whether the economy shows signs of softening without a sharp downturn.