Equities Fall Intraday as Survey Shows Continued Manufacturing Contraction

02:09 PM EST, 12/01/2025 (MT Newswires) -- US benchmark equity indexes were lower intraday as a survey showed continued contraction in the manufacturing sector, while markets awaited remarks by Federal Reserve Chair Jerome Powell.

The Dow Jones Industrial Average was down 0.3% at 47,569.5 after midday Monday, while the S&P 500 and the Nasdaq Composite fell 0.1% each to 6,842.9 and 23,345.4, respectively. Among sectors, utilities saw the biggest drop, while energy paced the gainers.

In economic news, the Institute for Supply Management's manufacturing purchasing managers' index fell to 48.2 last month from 48.7 in October, marking a ninth consecutive month of contraction.

"Companies continued to focus on accelerating staff reductions due to uncertain near- to mid-term demand," Susan Spence, chair of the ISM's manufacturing business survey committee, said. "The main headcount management strategies remain layoffs and not filling open positions."

Separately, S&P Global (SPGI) said its manufacturing PMI ticked down to 52.2 in November from 52.5 the month prior, but represented the fourth consecutive month of expansion. However, that report also pointed to certain concerns.

"For two successive months now, warehouses have filled with unsold stock to a degree not previously seen since comparable data were available in 2007," S&P Global Market Intelligence Chief Business Economist Chris Williamson said. "This unplanned accumulation of stock is usually a precursor to reduced production in the coming months."

Powell is scheduled to speak at 8 pm ET Monday, with traders closely watching for any hints on monetary policy, though Fed speakers are currently in their pre-meeting blackout period.

The odds of a 25-basis-point interest rate cut at the central bank's meeting next week were at 87% Monday, up from 86% Friday, according to the CME FedWatch tool.

US Treasury yields were higher intraday Monday, with the 10-year rate up 7.3 basis points at 4.09% and the two-year rate rising 4.3 basis points to 3.53%.

Online spending on Black Friday rose more than expected amid a surge in artificial intelligence-driven shopping, according to Adobe (ADBE) Analytics' data. US shoppers spent $11.8 billion online this Black Friday, compared with Adobe's October projection that called for 8.3% year-over-year growth to $11.7 billion.

Separately, Mastercard's (MA) SpendingPulse report showed Saturday that Black Friday retail sales excluding autos rose 4.1%, compared with last year's 3.4% growth.

"Despite uncertainty and market volatility, as well as a significant reduction in confidence as of late, households were still out spending during the first key weekend of the holiday shopping season, underscoring the lingering notion of ongoing borrowing and purchasing power on the part of the American consumer," Stifel said.

West Texas Intermediate crude oil was up 1.4% at $59.39 a barrel intraday.

"Oil prices rose as the Caspian Pipeline Consortium halted exports following a major drone attack, while (the Organization of the Petroleum Exporting Countries and its allies) kept output unchanged for the first quarter of 2026," D.A. Davidson said in a note.

In company news, Nvidia (NVDA) has invested $2 billion in Synopsys (SNPS) as part of an expanded partnership that is expected to open new opportunities across design and engineering. Nvidia (NVDA) shares were up 1.5% intraday, among the top gainers on the Dow, while Synopsys (SNPS) jumped 4.5%.

Old Dominion Freight Line (ODFL) was the best S&P 500 performer, up 5.4%, as BMO upgraded the stock to outperform from market perform.

Credo Technology (CRDO) and MongoDB (MDB) are scheduled to report their latest quarterly financial results after the closing bell Monday.

Gold was up 0.4% at $4,272.60 per troy ounce, while silver rose 3.5% to $59.18 per ounce.

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