Wall Street feasted on stocks during Thanksgiving week, but that might have brought on a case of indigestion on Monday.
The S&P 500 was down 0.3%, though just over half of the stocks in the index were trading higher on the day. The Dow was down 257 points, or 0.5%. The Nasdaq Composite was down 0.3%.
All three opened even lower before paring their losses. Though Bitcoin’s sharp decline was a big story, risk assets weren’t broadly sliding: The Invesco S&P 500 High Beta ETF, which includes the riskier stocks in the S&P 500, was actually up 0.2%.
Momentum, small-cap, and low volatility stocks were the big laggards on Monday. Wall Street was also favoring exchange-traded funds focused on value and quality.
The artificial intelligence trade was holding up well. The Roundhill Magnificent Seven ETF was pretty much flat on the day, while the iShares Semiconductor ETF was up 0.5%. Nvidia was up 1.5% after struggling in November.
The S&P 500 and Dow each ended November with slight gains after rallying furiously during the Thanksgiving-shortened week.
“As we enter December, a month that’s historically strong, this market continues to show its resilience: a 5% rally in five sessions, a persistent buy-the-dip instinct, and even signs of a leadership shift,” writes Mark Hackett, chief market strategist at Nationwide. “Seasonality, solid consumer spending despite grumpy sentiment, and year-end positioning all set the stage for a Santa Claus rally this year, most likely in the back half of the month.”
In the meantime, Wall Street this week will get a wave of earnings reports from the likes of Salesforce, Snowflake, Marvell Technology, as well as retailers like Dollar Tree, Dollar General, and Ulta Beauty.
If they close lower, the major indexes would snap their winning streaks at five sessions.