Wall St closes lower as investors position for busy week of data

Wall ‌Street ​closed lower on Monday as ‌investors braced for a slew of economic data later this week while ​assessing reports on Federal Reserve candidates and commentary from policymakers for clues on the interest rate outlook.

The ‍nonfarm payroll figures for October and November ​are due later this week, along with reports on retail sales, business activity and inflation. ​October’s jobs data ⁠was delayed by the government shutdown earlier this quarter.

“Markets today are struggling with where to find the leadership, in terms of not wanting all the eggs in the AI basket and not having a lot of data yet,” said Carol Schleif, chief investment officer at BMO Family ‌Office. “People will hold their breath a little bit before the jobs numbers this week and ​whether or ‌not those are supportive ‍of more rate ⁠cuts.”

The S&P 500 and the Nasdaq had logged their steepest daily declines in more than three weeks on Friday amid concerns about inflation and debt-fueled AI investments.

Traders also assessed a report that White House economic adviser Kevin Hassett’s candidacy for the Fed chair role received some pushback from people close to U.S. President Donald Trump.

Speculation has been rife over a possible frontrunner as Jerome Powell’s term ends in May. Expectations for ​a dovish Fed chair have fueled bets for interest rate cuts next year.

Also on Monday, New York Fed President John Williams said the central bank’s interest rate cut last week leaves it in a good position, while Fed Governor Stephen Miran argued that current inflation does not reflect the true supply-demand dynamics.

According to preliminary data, the S&P 500 lost 9.95 points, or 0.15%, to end at 6,816.34 points, while the Nasdaq Composite lost 135.14 points, or 0.58%, to 23,060.03. The Dow Jones Industrial Average fell 41.43 points, or 0.09%, to 48,416.62.

In company moves, Tesla rose after CEO Elon Musk said the ​electric vehicle maker was testing its robotaxis without safety monitors in the front passenger seat.

ServiceNow fell following a report that the cybersecurity company is in advanced talks to buy startup Armis.

IRobot plunged after the Roomba vacuum-cleaner maker filed for bankruptcy protection.

European shares ended higher on ‌Monday ​in broad-based gains led by banks, kicking ‌off a week packed with central bank decisions and delayed U.S. economic data on a positive ​note, as investors returned to risk assets after last week’s subdued finish.

The pan-European STOXX 600 closed 0.82% higher at 582.97, putting it 0.6% away ‍from a record high. Major regional bourses ​also advanced, with Spain’s ending at a record close - up 1.2%.

The STOXX 600 slipped into negative weekly territory at the last moment on ​Friday, mirroring Wall ⁠Street after U.S. chipmaker Broadcom’s profit margin warning sparked renewed concerns about a potential bubble in artificial intelligence stocks.

The market staged a broader recovery on Monday, with 19 of the 20 main sectors trading higher, led by heavyweight banks, which rose 1.8% to close at a level last seen in May 2008.

Insurers rallied a 1.2% jump, and travel stocks climbed 1.3%, further boosting the main ‌index.

XTB’s research director Kathleen Brooks said that risk sentiment was stabilizing after the sell-off as markets turned their attention to macroeconomic ​factors ‌this week.

An index of automakers was ‍the only outlier, down ⁠0.14%, after two straight days of gains. The losses were limited by an expected reprieve for regional carmakers, with Brussels set to reverse the EU’s effective ban on sales of new combustion‑engine cars from 2035.