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Nvidia ( NVDA ) falls after Chinese regulator launches antitrust
probe
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Hershey jumps after report Mondelez ( MDLZ ) exploring acquisition
of co
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Indexes down: Dow 0.22%, S&P 500 0.44%, Nasdaq 0.48%
(Updates with mid-session trading)
By Purvi Agarwal and Shashwat Chauhan
Dec 9 (Reuters) - Wall Street's main indexes slipped on
Monday as declines in AI powerhouse Nvidia ( NVDA ) pressured tech
stocks, while investors awaited a key inflation report this
week.
Chipmaker Nvidia lost 3.1% after China's market
regulator said it had opened an investigation into the company
over suspected violation of the country's antimonopoly law,
sending the information technology sector down 0.4%.
Peer Advanced Micro Devices ( AMD ) also fell 4.2% as
BofA Global Research downgraded its rating on the stock. A gauge
of semiconductor stocks was down 0.7%.
"A name like Nvidia ( NVDA ) is coming under pressure because of the
sort of retaliatory actions of China and that is putting some
pressure on the tech space," said Robert Pavlik, senior
portfolio manager at Dakota Wealth.
"People are just trying to work out what they are going to
do between now and year-end ... those that are positioning, are
maybe thinking about taking some profit before heading into the
next year."
At 11:26 a.m. ET, the Dow Jones Industrial Average
fell 94.95 points, or 0.22%, to 44,547.57, the S&P 500
lost 27.02 points, or 0.44%, to 6,063.25, and the Nasdaq
Composite lost 96.30 points, or 0.48%, to 19,763.66.
Comcast ( CMCSA ) lost 7.6% after forecasting broadband
subscriber losses of a little over 100,000 for the fourth
quarter. That pulled down the communication services sector
by 1.1%.
Hershey jumped 12% to lead gainers on the S&P
500, after a report said Cadbury-parent Mondelez ( MDLZ ) was
exploring an acquisition of the chocolate maker. Mondelez ( MDLZ ) shares
were off 2.4%.
On the data front, the consumer prices index (CPI) data
due on Wednesday is among the last major datasets ahead of the
Federal Reserve's Dec. 17-18 meeting and could influence the
central bank's monetary policy path.
Bets of a 25-basis-point rate cut at the upcoming meeting
shot up to more than 85% after data on Friday showed a rise in
the unemployment rate to 4.2% in November, pointing to an easing
labor market.
A host of Fed officials including Chair Jerome Powell last
week urged more caution around the central bank's monetary
policy easing path considering the resilience of the economy.
Wall Street's main indexes kicked off December on a broadly
positive note, with the benchmark S&P 500 and the
tech-heavy Nasdaq logging gains in their first week,
while the blue-chip Dow ended the week marginally lower.
U.S. equities surged in November as Donald Trump's victory
in the presidential election and his party sweeping both houses
of Congress raised expectations of a friendlier policy stance
towards companies.
Among notable movers on Monday, Workday added 6.3%
on its planned inclusion into the S&P 500 index.
Interpublic Group advanced 7.2% after a report said
marketing conglomerate Omnicom ( OMC ) was in advanced talks to
acquire the advertising company. Omnicom ( OMC ) shares were down 8.7%.
Advancing issues outnumbered decliners by a 1.12-to-1 ratio
on the NYSE and by a 1.15-to-1 ratio on the Nasdaq.
The S&P 500 posted 18 new 52-week highs and 2 new lows while
the Nasdaq Composite recorded 97 new highs and 34 new lows.