Equities Fall Ahead of November Employment Report

04:55 PM EST, 12/15/2025 (MT Newswires) -- US stocks started the week lower as investors awaited key economic data to be released later this week, including the November employment report.

The Nasdaq Composite fell 0.6% to 23,057.4, closing lower for a third consecutive session. The S&P 500 slipped 0.2% to 6,816.5, while the Dow Jones Industrial Average dropped 0.1% to 48,416.6 -- both down for a second day in a row.

Most sectors ended higher, led by health care, while technology saw the steepest decline.

The government's nonfarm payrolls report for November is out on Tuesday.

The US economy likely added 50,000 jobs in November, compared with a gain of 119,000 in September, according to a Bloomberg poll. The Bureau of Labor Statistics canceled October's employment report due to the recent federal government shutdown.

"This is a week where data, not narratives, may move prices," Koen Hoorelbeke, investment and options strategist at Saxo Bank, said in a report on Monday. "With volatility still relatively inexpensive and macro risk rising, discipline and diversification remain essential as the year draws to a close."

Last week, the Federal Reserve delivered a third consecutive 25-basis-point interest rate cut amid continued concerns about the labor market. Policymakers reiterated their median rate expectations through 2028.

The consumer price index for November is scheduled for a Thursday release, while the same month's personal income and outlays report, which includes the Fed preferred inflation metric, is due on Friday.

Fed Governor Stephen Miran said Monday that core inflation is likely closer to the US central bank's 2% target than what official data suggest.

In prepared remarks for a Columbia University event, the President Donald Trump ally argued that "a better measure of underlying inflation would account for distortions from shelter and imputed prices."

"Removing imputed phantom inflation like portfolio management, market-based core inflation is running below 2.6%," he said. "If we further remove housing and look at market-based core ex shelter, underlying inflation is running below 2.3%, within noise of our target."

Separately, New York Fed President John Williams said Monday that he expects inflation to ease to just under 2.5% next year.

On Friday, Chicago Fed President Austan Goolsbee and his Kansas City counterpart, Jeffrey Schmid, said that they dissented on last week's rate cut due to inflation risks. Philadelphia Fed President Anna Paulson said that she expects inflation to ease in 2026.

"The divide among policy officials is likely to intensify with the imposition of new leadership come May 2026 when Jerome Powell's term as chairman of the (Fed) concludes," Stifel Chief Economist Lindsey Piegza said in a report on Monday. "While the chairman holds only one vote just like the other members of the committee, leadership can add a persuasive tone to the conversation and analysis in determining the correct or most appropriate pathway for policy."

US Treasury yields were mixed, with the two-year rate down 1.7 basis points at 3.52%, while the 10-year rate was little changed at 4.18%.

In economic news, homebuilder confidence in the US increased this month but remained in negative territory amid rising construction costs and economic uncertainty, according to National Association of Home Builders and Wells Fargo data.

"Market conditions remain challenging with two-thirds of builders reporting they are offering incentives to move buyers off the fence," NAHB Chairman Buddy Hughes said. "Meanwhile, builders are contending with rising material and labor prices, as tariffs are having serious repercussions on construction costs."

In company news, shares of iRobot (IRBT) tanked nearly 73% after the Roomba robot vacuum maker filed for bankruptcy protection and agreed to be acquired by its primary contract manufacturer. Late Sunday, iRobot said it commenced a chapter 11 process that is expected to complete by February.

ServiceNow (NOW) slumped nearly 12%, the worst performer on the S&P 500.

KeyBank Capital Markets downgraded the software company to underweight from sector weight amid "worrying trends" in the information technology back-office employment data.

The software-as-a-service space is being disrupted by a shift to AI agents.

Broadcom (AVGO) was down 5.6%, among the worst performers on the S&P 500 as the chipmaker extended late last week's fall.

"As investor assessment of a potential artificial intelligence bubble and high valuations weighs on technology- and growth-centric stocks and sectors, money has flowed into companies that have either lagged the broad market in recent periods or are thought to be more cyclical and positioned to benefit from an improving economy," D.A. Davidson said in a report Monday.

Micron Technology (MU) , Accenture (ACN) , Nike (NKE) , Cintas (CTAS) , FedEx (FDX) and General Mills (GIS) are set to report their latest financial results later this week.

West Texas Intermediate crude oil was down 1.5% at $56.60 a barrel in Monday late-afternoon trade.

Gold edged up 0.1% to $4,333.90 per troy ounce, while silver climbed 3.2% to $64.01 per ounce.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.