The U.S. stock market witnessed a mix of movements on Monday. After the S&P 500 and Nasdaq achieved record closing highs in the previous session due to upbeat corporate forecasts, futures remained subdued. Investors were eagerly awaiting a crucial inflation report due later this week. The consumer prices index (CPI) data on Wednesday is one of the last major datasets before the Federal Reserve's Dec. 17-18 meeting and could significantly influence the central bank's monetary policy path. Bets of a 25-basis-point rate cut in December soared to over 87% as Friday's data showed a surge in U.S. job growth in November despite being hampered by hurricanes and strikes. However, the rise in the unemployment rate to 4.2% indicated a loosening labor market. Economists at Jefferies wrote in a note that they remain in the December rates cut camp and expect a 25-bp cut next week. But after the December meeting, they anticipate the pace of rate cuts to slow to once a quarter, with the next cut expected in March. Meanwhile, Citigroup revised its December rate cut call to 25-bps from its prior forecast of 50 bps. A host of Fed officials, including Chair Jerome Powell, last week stated that the central bank could be more cautious with its monetary policy easing path given the economy's resilience.Workday and Apollo's Surge
At 7:13 a.m. ET, Workday WDAY and Apollo Global Management APO jumped 9% and 6.3%, respectively, on their planned inclusion into the S&P 500 index. This significant move showcases the positive impact of such additions on these companies. It highlights the confidence of market participants in their future prospects and the potential for growth. The inclusion in the S&P 500 provides them with increased visibility and access to a broader investor base.Interpublic's Advance
Interpublic Group IPG advanced 14.6% after a report indicated that marketing conglomerate Omnicom OMC was in advanced talks to acquire the advertising company. This development has sparked excitement in the market as it could lead to synergies and growth opportunities. Omnicom shares, on the other hand, were down 5.2%, reflecting the market's reaction to the potential acquisition. Such merger talks often have a ripple effect on the stock prices of the involved companies and can drive significant market movements.Notable Pre-Market Movers
Nvidia NVDA was last down 1.8% after China's market regulator opened an investigation into the company over suspected violation of the country's antimonopoly law. This regulatory action has had an impact on Nvidia's stock price, highlighting the importance of compliance and regulatory environments in the global market. U.S.-listed shares of Chinese companies gained as the Chinese Politburo hinted at a shift to looser monetary policy next year and more proactive fiscal policy to stimulate economic growth. Alibaba BABA was up 6.1%, PDD Holdings PDD climbed 9.1%, and Baidu BIDU added 5.3%. These gains demonstrate the sensitivity of Chinese stocks to policy changes and the potential for growth in a more favorable economic environment.
