The US markets ended deeply in red on Monday with Nasdaq settling cut of over one percent. After moving sharply lower early in the session, stocks regained some ground over the course of the trading day on Monday but remained firmly in negative territory. The major averages added to the steep losses posted last Friday. The early weakness on markets reflected an extension of the sell-off seen last Friday, with some traders taking profits going into the end of the year. A slump by shares of Boeing (BA) weighed on the Dow, as the aerospace giant tumbled by 2.3 percent after South Korea's Transport Ministry ordered an inspection of B737-800 aircraft after the deadly Jeju Air crash over the weekend.
On the economic data front, a report released by the National Association of Realtors (NAR) showed pending home sales in the U.S. surged by much more than expected in the month of November. NAR said its pending home sales index shot up by 2.2 percent to 79.0 in November after jumping by 1.8 percent to 77.3 in October. Street had expected pending home sales to climb by 0.7 percent. The pending home sales index increased for the fourth consecutive month, reaching its highest level since February 2023. A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
Dow Jones Industrial Average fell 418.48 points or 0.97 percent to 42,573.73, Nasdaq dropped 235.25 points or 1.19 percent to 19,486.78 and S&P 500 was down by 63.9 points or 1.07 percent to 5,906.94.
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