U.S. stocks drifted lower on Monday, led by renewed weakness in technology shares, as investors positioned cautiously ahead of another round of delayed economic data that could reshape expectations for interest rates into 2026.
Market Pullback Led by Tech
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Nasdaq Composite: –0.6%
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$S&P 500(.SPX)$ : –0.2%
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Dow Jones: –0.1%
Index
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Hot Stock: $Gartner(IT)$ +5.3%
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Biggest Loser: ServiceNow –11.5%
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Best Sector: Healthcare +1.3%
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Worst Sector: Information Technology –1.0%
Technology stocks were the main drag:
Tech
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Investors locked in profits after years of AI-driven outperformance. $NVIDIA(NVDA)$ $Palantir Technologies Inc.(PLTR)$ $Oracle(ORCL)$
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Treasury yields rose across the curve, putting pressure on long-duration assets like tech stocks.
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Higher long-term yields hurt companies whose valuations depend heavily on future earnings and cash flows.
All Eyes on Jobs and Spending Data
Markets are now looking past last week’s Fed meeting and toward fresh economic signals arriving Tuesday morning.
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Jobs report (November):
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Expected payroll growth: +40,000
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Unemployment rate forecast: 4.4%
Jobs
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Retail sales (October):
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Expected to rise 0.1% month over month
Why it matters:
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According to Morgan Stanley’s Mike Wilson, this week’s data could matter more than the Fed decision itself for shaping rate expectations.
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Investors are hoping for a “Goldilocks” outcome:
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Labor market strong enough to avoid recession
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Weak enough to keep the Fed cutting rates
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Consumer spending steady, but not inflationary
Data May Be Noisy
Even before the numbers arrive, economists are urging caution.
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The government shutdown and federal workforce restructuring are likely to distort labor market data.
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EY-Parthenon warns headline figures may mask the true pace of job growth.
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Retail sales data will be easier to read, but already somewhat stale, reflecting October activity.
What to Watch Next
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November jobs report and October retail sales on Tuesday
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December PMI data from S&P Global
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Any shift in bond yields that could further pressure growth stocks
Bottom Line
Tech stocks are losing momentum as higher yields and profit-taking collide with uncertainty around economic data. With the Fed temporarily out of the spotlight, jobs and consumer spending will now determine whether markets stabilize, or face further downside…
[Salute]
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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.
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