--- title: "The US stock market starts the week with \"headwinds\": Tech stock sell-off spreads, and the market is once again in turmoil ahead of key data" type: "News" locale: "en" url: "https://longbridge.com/en/news/269795489.md" description: "This Monday, the U.S. stock market fell, with continued sell-off in technology stocks. The S&P 500 index dropped by 0.2%, and the Nasdaq 100 index fell by 0.5%. Investor concerns over artificial intelligence and disappointing earnings reports from Oracle and Broadcom intensified market volatility. Although NVIDIA, Meta, and Tesla saw gains, overall market sentiment remained under pressure. Analysts believe that concerns over an artificial intelligence bubble may be exaggerated, and market volatility is company-specific" datetime: "2025-12-16T01:52:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/269795489.md) - [en](https://longbridge.com/en/news/269795489.md) - [zh-HK](https://longbridge.com/zh-HK/news/269795489.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/269795489.md) | [繁體中文](https://longbridge.com/zh-HK/news/269795489.md) # The US stock market starts the week with "headwinds": Tech stock sell-off spreads, and the market is once again in turmoil ahead of key data The Zhitong Finance APP noted that the U.S. stock market closed lower on Monday, as the sell-off in technology stocks continued and traders prepared for a large amount of economic data to be released soon. The S&P 500 index fell 0.2% at the close in New York, erasing early gains and marking a decline for the second consecutive trading day. The tech-heavy Nasdaq 100 index dropped 0.5%, resulting in a decline for the third consecutive trading day. Chris Beauchamp, Chief Market Analyst at IG, stated, "The positive sentiment in the early session has dissipated, and the sell-off from last Friday has continued into the U.S. trading session on Monday." He said, "After such a strong recovery since April, the temptation for many investors to take profits must be very strong, especially with a large number of macro events on the schedule this week." Last week, technology stocks performed poorly due to renewed concerns about artificial intelligence. Disappointing earnings reports from Oracle (ORCL.US) and Broadcom (AVGO.US) exacerbated these concerns, offsetting the optimism brought by the Federal Reserve's interest rate cuts. Rick Gardner, Chief Investment Officer at RGA Investments, believes that whether investors will continue to accept the high valuations of large tech stocks and AI stocks is "a big question" for 2026. He pointed out that while the technology shows "great potential," many stocks are valued "as if all AI productivity has already been realized." The closing prices of the seven major tech giants were mixed, with Nvidia (NVDA.US), Meta (META.US), and Tesla (TSLA.US) rising. The index of the seven major tech giants increased by 0.1%. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251216/1765849510590101.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) The S&P 500 index fell for the second consecutive trading day. Mark Hackett from Nationwide believes that concerns about an AI bubble "may be exaggerated." Hackett stated, "This is not a market-wide phenomenon—it is very company-specific and relatively controllable." He noted that while some individual stocks have a greater impact on the S&P 500 index than others, "as market leadership continues to shift and investors diversify away from a narrow group of companies, this risk is diminishing." He added, "What we are seeing is more like the market recalibrating." Traders will turn their attention to a large amount of economic data set to be released this week. Non-farm payroll data for October and November, along with the unemployment rate report for November, are scheduled to be released on Tuesday. Following that, part of the Consumer Price Index (CPI) report for October and the full CPI report for November will be released on Thursday. For traders, this week's economic data will help fill the data gaps caused by the government shutdown. Economists expect an increase of 50,000 jobs in November, with an unemployment rate of 4.5% Wall Street strategists remain optimistic about U.S. stocks. Michael Wilson of Morgan Stanley stated that this week's moderately weak employment data could increase the likelihood of further interest rate cuts by the Federal Reserve, thereby boosting bullish sentiment in the stock market. In a report released on Monday, Wilson wrote, "We are now back in the 'good news is bad news/bad news is good news' mechanism." He said, "This means that moderate weakness in the labor market is likely to be interpreted positively by the stock market." Meanwhile, strategists led by Scott Chronert at Citigroup have become the latest group to predict double-digit gains for the U.S. stock market next year. Chronert forecasts that the S&P 500 index will soar to 7,700 points by the end of 2026, with strong earnings and expectations for loose monetary policy at the core of this prediction ### Related Stocks - [Tesla, Inc. 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