U.S. stocks close mixed to start new week

NEW YORK, Nov. 18 (Xinhua) -- U.S. stocks ended mixed on Monday, as the equities market aimed to recover from last week's steep sell-off.

The Dow Jones Industrial Average fell 55.39 points, or 0.13 percent, to 43,389.60. The S&P 500 added 23.00 points, or 0.39 percent, to 5,893.62. The Nasdaq Composite Index increased 111.69 points, or 0.60 percent, to 18,791.81.

Ten of the 11 primary S&P 500 sectors ended in green, with energy and communication services leading the gainers by adding 1.05 percent and 1.04 percent, respectively. Meanwhile, industrials bucked the trend by going down 0.17 percent.

The yield on 10-year U.S. Treasury bonds, closely tied to interest rate expectations, hovered around 4.42 percent after peaking at 4.49 percent earlier in the session. Yields have climbed recently as investors recalibrate expectations for Federal Reserve rate cuts. Federal Reserve Chair Jerome Powell reiterated last week that the central bank was not rushing to lower rates, citing inflation's uneven progress toward the Fed's target.

Nvidia is set to release its third-quarter earnings on Wednesday, but its stock fell as much as 3.4 percent on Monday before recovering some losses, after a report from The Information raised concerns about overheating issues with its latest Blackwell AI servers. By the close of trading, Nvidia shares were down 1.29 percent, ending the session at 140.15 U.S. dollars.

"While Nvidia is the last of the Magnificent Seven to report, you've seen a nice broadening in earnings and attention," said Carol Schleif, chief investment officer at BMO Family Office. "It'll be noteworthy, but it doesn't feel like there's the same level of impetus around it as there was a quarter or two ago."

With more than 90 percent of S&P 500 companies having reported their earnings, third-quarter profits have risen 6.8 percent year over year, according to Oppenheimer's Monday note. This growth has been supported by an overall 5 percent increase in revenue, with eight out of 11 sectors in the benchmark index posting higher earnings.

However, key reports from major retailers are still to come. Besides Nvidia, Walmart and Lowe's are slated to announce their results on Tuesday, followed by Target and TJX on Wednesday. These earnings, along with any revisions to their forecasts, are expected to shed light on consumer trends and spending habits as Black Friday approaches.

While still in November, Morgan Stanley is optimistic about the S&P 500 index for 2025, raising its base case projection to 6,500, which reflects an expected growth of nearly 11 percent from current levels. "Looking forward to 2025, we think it will continue to be important for investors to remain nimble around market leadership changes, particularly given the potential uncertainty that the recent election outcome introduces," strategists led by Michael J. Wilson said in a note.