The S&P 500 Index ($SPX) (SPY) closed down -0.51% on Monday, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.41%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.39%. December E-mini S&P futures (ESZ26) fell -0.49%, and December E-mini Nasdaq futures (NQZ26) fell -1.36%.
US stocks gave up an early advance on Monday and settled mixed, with the Nasdaq 100 falling to a 3-month low. Last week’s sell-off in chipmakers and AI-infrastructure stocks continued Monday, weighing on the broader market. The Dow Jones Industrial Average closed higher as some large-cap consumer and industrial stocks saw some defensive buying as investors rotated out of tech stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stock indexes initially rallied on Monday as a -7% plunge in WTI crude oil prices to a 2-week low boosted market sentiment, as signs suggest the US favors giving diplomacy time to resolve the US-Iran conflict. Stocks also found support from Monday’s economic news that showed US manufacturing activity unexpectedly accelerated last month, and business prices fell more than expected.
The US Oct ISM manufacturing index unexpectedly rose by +1.0 to 55.5, stronger than expectations of no change at 54.5. The Oct ISM prices paid sub-index fell -2.7 to 75.2, weaker than expectations of 77.2.
US Sep construction spending unexpectedly fell -1.9% m/m, weaker than expectations of a +0.3% m/m increase and the biggest decline in nearly 6.5 years.
Chinese economic news was weaker than expected, a negative factor for global growth prospects. The China Oct manufacturing PMI fell -0.8 to 49.3, weaker than expectations of 49.9. Also, the Oct non-manufacturing PMI fell -0.5 to 49.7, weaker than expectations of 50.0.
Dec WTI crude oil prices (CLZ26) sank more than -7% on Monday to a 2-week low after a report from Axios said that President Trump told Israeli Prime Minister Netanyahu that he wants to give diplomacy with Iran more time before resuming strikes on the country. Crude losses accelerated Monday after Iran's state-run IRNA reported that Iran's Supreme Leader Khamenei granted the Iranian government authority to engage in talks regarding the conflict with the US. Also, signs that crude supplies are still leaving the Middle East are weighing on prices after Tankertrackers.com reported that Saudi Arabia has shipped a total of 6.99 million bpd of crude in October from its east and west coasts.
Stocks are supported by the prospect of solid quarterly earnings. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +31% from a year earlier, up from a July estimate of 22%. As of Monday, 308 of the S&P 500 companies have reported results, with 83% beating estimates.
Overseas stock markets settled mixed on Monday. The Euro Stoxx 50 closed up +0.73%. China’s Shanghai Composite closed up +1.08%. Japan's Nikkei-225 Stock Average closed down -0.33%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +7 ticks on Monday. The 10-year T-note yield fell -2.1 bp to 4.900%. Dec T-notes rallied to a 7-week high on Monday, and the 10-year T-note yield fell to a 7-week low of 4.865%. T-notes rose after WTI crude oil fell more than -7% to a -week low, which eased inflation expectations. The 10-year breakeven inflation rate fell to a 2.5-month low of 2.301% on Monday. Gains in T-notes were contained after the Oct ISM manufacturing index unexpectedly increased, a sign of economic strength that is hawkish for Fed policy.
The markets are now pricing in a 74% chance of a +25 bp rate hike at the FOMC’s next meeting on December 8-9.
European government bond yields moved lower on Monday. The 10-year German bund yield dropped to a 2-month low of 3.289% and finished down -3.0 bp to 3.292%. The 10-year UK gilt yield fell to a 1.25-month low of 5.184% and finished down -9.2 bp to 5.192%.
The Eurozone Oct S&P manufacturing PMI was revised upward by +0.3 to 52.7 from the previously reported 52.4.
German Sep retail sales unexpectedly fell -2.0% m/m versus expectations of a +0.4% m/m increase.
ECB Governing Council member Peter Kazimir said, "Markets may still underestimate what is required" and may not be pricing in enough ECB tightening, with the energy shock showing no sign of fading and inflation picking up again.
The markets are now pricing in an 83% chance of a +25 bp rate hike at the ECB’s next policy meeting on December 17.
US Stock Movers
Chip stocks and AI-infrastructure companies gave up an early advance and sold off on Monday, weighing on the broader market. The iShares Semiconductor ETF (SOXX) sank to a 6-month low and closed down more than -3%. Intel (INTC) closed down more than -8%, and Advanced Micro Devices (AMD), Seagate Technology Holdings Plc (STX), and Western Digital (WDC) closed down more than -7%. Also, Sandisk (SNDK) closed down more than -6%, and Micron Technology (MU) closed down more than -5%. In addition, Lam Research (LRCX), Applied Materials (AMAT), and ARM Holdings Plc (ARM) closed down more than -4%, and KLA Corp (KLAC) closed down more than -3%.
Cybersecurity stocks retreated on Monday. Okta (OKTA), closed down more than -10%, and Fortinet (FTNT) closed down more than -7%. Also, SentinelOne (S) closed down more than -6%, and Cloudflare (NET) and Zscaler (ZS) closed down more than -5%. In addition, Crowdstrike Holdings (CRWD) and Palo Alto Networks (PANW) closed down more than -3%.
Lumentum Holdings (LITE) closed down more than -18% to lead losers in the S&P 500 and Nasdaq 100 after Marvell Technology acquired the company in an all-stock transaction with an enterprise value of $115 billion. Marvell Technology (MRVL) closed down more than -12%. Other cloud infrastructure stocks finished lower as well, with CoreWeave (CRWV), Applied Digital (APLD), Nebius Group NV (NBIS), and Oracle (ORCL) closing down more than -8%, and Arista Networks (ANET) closing down more than -2%.
Oil companies were under pressure on Monday after WTI crude oil plunged more than -7% to a 2-week low. APA Corp (APA) closed down more than -7%, and Devon Energy (DVN) closed down more than -6%. Also, Diamondback Energy (FANG) and Occidental Petroleum (OXY) closed down more than -5%, and ConocoPhillips (COP), ExxonMobil Holdings (XOM), Halliburton (HAL), and Valero Energy (VLO) closed down more than -4%, and Chevron (CVX) closed down more than -3% to lead losers in the Dow Jones Industrials. In addition, Marathon Petroleum (MPC) and Baker Hughes (BKR) closed down more than -3%, and Phillips 66 (PSX) closed down more than -2%.
Airlines and cruise line operators rallied on Monday, as crude oil prices sank more than -7%. Alaska Air Group (ALK) closed up more than +7%, and United Airlines Holdings (UAL), Delta Air Lines (DAL), Carnival (CCL), and Royal Caribbean Cruises (RCL) closed up more than +4%. Also, American Airlines Group (AAL) and Southwest Airlines (LUV) closed up more than +3%, and Norwegian Cruise Line Holdings (NCLH) closed up more than +2%.
Oracle (ORCL) closed down more than -8% after announcing it will offer $10 billion of shares of its common stock.
Check Point Software (CHKP) closed down more than -6% after reporting Q3 revenue of $669.8 million, below the consensus of $672.1 million.
IDEXX Laboratories (IDXX) closed up more than +21% to lead gainers in the S&P 500 and Nasdaq 100 after boosting its full-year revenue forecast to $4.74 billion to $4.77 billion from a previous estimate of $4.70 billion to $4.75 billion, above the consensus of $4.72 billion.
Tempus AI (TEM) closed up more than +8% after forecasting full-year revenue of $1.60 billion to $1.61 billion, better than the consensus of $1.59 billion.
Marriott International (MAR) closed up more than +4% after raising its full-year adjusted EPS forecast to $12.07 to $12.14 from a previous view of $11.64 to $11.81, stronger than the consensus of $11.73.
Amazon.com (AMZN) closed up more than +2% after Phillip Securities upgraded the stock to buy from accumulate with a price target of $330.
EchoStar (ECHO) closed up more than +1% after the Washington Post reported that SpaceX held talks about launching its own wireless service with the company.
Earnings Reports (11/3/2026)
ADT Inc (ADT), Advanced Micro Devices Inc (AMD), Affiliated Managers Group Inc (AMG), Amdocs Ltd (DOX), American Financial Group Inc/O (AFG), American International Group Inc (AIG), AMETEK Inc (AME), Amgen Inc (AMGN), Apollo Global Management Inc (APO), Aptiv PLC (APTV), Archer-Daniels-Midland Co (ADM), Arista Networks Inc (ANET), Assurant Inc (AIZ), Astera Labs Inc (ALAB), Avis Budget Group Inc (CAR), Ball Corp (BALL), Block Inc (XYZ), Booking Holdings Inc (BKNG), Broadridge Financial Solutions (BR), Corcept Therapeutics Inc (CORT), Coupang Inc (CPNG), DigitalOcean Holdings Inc (DOCN), Duolingo Inc (DUOL), DuPont de Nemours Inc (DD), Dynatrace Inc (DT), Eaton Corp PLC (ETN), Essential Utilities Inc (WTRG), Everus Construction Group Inc (ECG), Expeditors International of Washington (EXPD), Fiserv Inc (FISV), Fortune Brands Innovations Inc (FBIN), Gartner Inc (IT), Graphic Packaging Holding Co (GPK), GXO Logistics Inc (GXO), Hamilton Lane Inc (HLNE), Hecla Mining Co (HL), Henry Schein Inc (HSIC), International Flavors & Fragrances (IFF), IPG Photonics Corp (IPGP), Jack Henry & Associates Inc (JKHY), Keurig Dr Pepper Inc (KDP), Leidos Holdings Inc (LDOS), Liberty Global Ltd (LBTYA), Louisiana-Pacific Corp (LPX), Madrigal Pharmaceuticals Inc (MDGL), Marathon Petroleum Corp (MPC), Matador Resources Co (MTDR), Modine Manufacturing Co (MOD), Mosaic Co/The (MOS), Omega Healthcare Investors Inc (OHI), Ovintiv Inc (OVV), Pfizer Inc (PFE), Pinnacle West Capital Corp (PNW), Primoris Services Corp (PRIM), Procore Technologies Inc (PCOR), Prudential Financial Inc (PRU), Regal Rexnord Corp (RRX), Revvity Inc (RVTY), Skyworks Solutions Inc (SWKS), Sotera Health Co (SHC), Summit Therapeutics Inc (SMMT), Super Mcro Computer Inc (SMCI), Sysco Corp (SYY), Talen Energy Corp (TLN), Toast Inc (TOST), UL Solutions Inc (ULS), Unum Group (UNM), Versant Media Group Inc (VSNT), Waters Corp (WAT), Yum! Brands Inc (YUM), Zebra Technologies Corp (ZBRA).
On the date of publication, Rich Asplund did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
Rivian Just Scored a New Bullish Rating. Here's Why. A $17 Billion Reason to Buy DoorDash Stock Now Despite the Selloff, Intel Stock Still Lacks a Strong Buy Case LITE Stock Alert: What to Know About Marvell's $115 Billion Deal to Buy Lumentum