S&P 500 Falls 0.92% to 6672.41 — Data Talk

The Ibovespa fell 0.6% to close at 158,000 on Monday as fresh data and a repricing of global rates underlined domestic fragility.

The IBC-Br index fell 0.2% in September month on month, pointing to softer activity, while hawkish comments from several FOMC members trimmed the odds of a near term US cut and pushed up local yields, weighing on banks such as Santander and Bradesco which slid about 1%.

Utilities underperformed with Axia down 2.6% and Sabesp off 3%.

Ambipar dropped 3.5% after moving into judicial recovery and Raízen lost 2.3% after reporting a R$2.3 billion net loss for the second quarter of the 2025/26 harvest. Petrobras bucked the pullback rising 0.3%.

The S&P/TSX Composite Index fell 0.8% to close at 30,076 on Monday as a tech swoon weighed on the market while investors parsed fresh Canadian and US economic indicators.

Canada’s annual inflation eased to 2.2% in October while core measures the Bank of Canada watches held near 3% reinforcing the BoC view that the cut cycle is likely over.

Tech mega cap Shopify led losses, tumbling 3.9%, followed by Constellation Software down 2.9% and other growth names under pressure.

Financials and large miners also lagged, with BMO, Agnico Eagle, Brookfield, Manulife, and Wheaton Precious Metals each losing between 1.3% and 2.5%.

With the US government shutdown ended, delayed US releases including the jobs report will resume this week and should help clarify the Fed outlook and frame near term market moves.

US stocks opened the week sharply lower as investors braced for a busy slate of delayed economic releases and a key round of tech earnings, with the Dow plunging 1.1% while the S&P 500 and Nasdaq slid 0.8% and 0.7% respectively.

The selloff was led by renewed weakness in big tech with Nvidia down 1.9% ahead of quarterly results due after the close on Wednesday a pivotal test of whether AI related valuations are sustainable and the move was amplified by broad selling across other large caps.

At the same time risk pricing has shifted materially as Fed funds futures now imply roughly a 40-45% chance of a 25bp cut in December which is pushing traders to seek clarity from this week’s jobs and other delayed data releases.

Alphabet (+3%) bucked the trend after Berkshire Hathaway disclosed a multibillion dollar stake in the company which underpinned its gains and highlighted selective bargain hunting amid the broader selloff.

By Emily Bary

One analyst notes that Sandisk's rapid growth this year has made it an 'elephant' in the S&P's small-cap index. That could drive its promotion to the big leagues.

Sandisk's roughly $40 billion market capitalization makes far larger than any of the other components of the S&P Small-Cap 600 index.

Cryptocurrency stockpiler Strategy might have an obstacle in its path to S&P 500 inclusion - in the form of an "elephant" currently residing in the S&P Small-Cap 600 index.

That's Stephens analyst Melissa Roberts's term for Sandisk (SNDK), the maker of storage devices whose red-hot stock in recent months has made it far bigger than any of its peers in the small-cap index.

Sandisk currently has a market capitalization of about $40 billion. No other member of the S&P Small-Cap 600 SML has a valuation above $11 billion.

S&P Dow Jones Indices has the option for quarterly index rebalances, which are announced on the first Friday of the last month of every quarter. The next batch of changes would be announced on Dec. 5 and become effective after the close on Dec. 19, assuming the index committee opts to swap out members, which doesn't always happen.

Don't miss: These stocks have been hit hard in 2025 but could surge by as much as 57% from here

The fourth-quarter update is typically the slowest for discretionary changes, according to Roberts, who said historical average turnover among S&P 1500 members is 0.4% in the period, versus 0.8% for the third quarter.

And while the committee has latitude in choosing what, if any, changes to make to the S&P 500 SPX this time around, "the few changes they might do might be focused on cleanup, where you have outsized names" in their current indexes, Roberts told MarketWatch.

Because of Sandisk's disproportionate size within the S&P Small-Cap 600 index, the company has a 2.6% market-cap weighting.

The index committee makes other changes when necessary, such as when a component is acquired by another component. Roberts noted that mergers tend to close around the end of the year and the beginning of the year, providing an additional pipeline for index changes.

See also: The surprising stocks leading the tech sector this year thanks to an AI renaissance

Sandisk is newly eligible for S&P 500 inclusion on the heels of a 515% stock surge in the past three months, which reflects how the company has been able to capitalize on a booming memory market and raise prices dramatically.

Strategy (MSTR), formerly known as MicroStrategy, is also freshly eligible for the S&P 500 this quarter, but Sandisk would potentially be a higher priority for inclusion because of the skewing impact it's having on the small-cap index, Roberts noted. Strategy, meanwhile, isn't in the S&P's small-cap or midcap indexes.

Strategy is also the subject of investor debate over its status as effectively a cryptocurrency holding play rather than an operating business, and its stock is volatile due to its heavy correlation with bitcoin price action.

Opinion: Bitcoin isn't dead - it's having an IPO moment. Here's when the selling will stop.

Sandisk's stock is volatile, too, as the artificial-intelligence boom has driven stratospheric price gains for normally cyclical memory and storage stocks. For that reason, Roberts acknowledged it's possible the index committee might "wait and see if the market cap and the price move stick."

Both companies are classified as members of the information-technology sector, a grouping that's underweight in the S&P 500. There are also two IT members of the S&P Mid-Cap 400 index MID - Pure Storage (PSTG) and Ciena (CIEN) - that have outgrown that index and could be candidates for migration, even though their market caps aren't quite as out of whack relative to index peers as Sandisk's is within the small-cap universe.

Pure Storage has a $27.8 billion market cap, and Ciena has a $27.1 billion market capitalization. A market cap of at least $22.7 billion is among the thresholds for S&P 500 inclusion, along with criteria around profitability, float and more.

Read on: How Nvidia can reassure investors at the biggest earnings event of the quarter

-Emily Bary

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

US stocks erased early losses to inch above the flatline on Monday as markets continued to position for the series of delayed economic data to be released before the Federal Reserve's next meeting.

The S&P 500 and the Nasdaq 100 were marginally higher while the Dow remained flat, still sharply lower than highs from the previous week.

Key reports that were delayed by the government shutdown, including the jobs report and trade data, are due this week and could influence the Fed's upcoming decision when many policymakers are growing more skeptical about the need for additional rate cuts.

Rate futures indicate that 40% of the market is positioned for a cut, compared to the near consensus earlier in November.

Alphabet gained 4% after Berkshire Hathaway disclosed it had taken a $4.9 billion stake in the company during the third quarter.

Meanwhile, Nvidia dropped 1.5% ahead of its earnings release after Wednesday's close, the latest test on how frothy AI stocks may have become this year.

The FTSE 100 Index is down 22.94 points or 0.24% today to 9675.43

• Down for three consecutive trading days
• Down 235.99 points or 2.38% over the last three trading days
• Largest three day point and percentage decline since Wednesday, April 9, 2025
• Off 2.38% from its record close of 9911.42 hit Wednesday, Nov. 12, 2025
• Up 52.66% since the pre-Brexit vote level of 6338.10 hit Thursday, June 23, 2016
• Lowest closing value since Monday, Oct. 27, 2025
• Off 2.38% from its 52-week high of 9911.42 hit Wednesday, Nov. 12, 2025
• Up 25.99% from its 52-week low of 7679.48 hit Wednesday, April 9, 2025
• Rose 19.31% from 52 weeks ago
• Off 2.38% from its 2025 closing high of 9911.42 hit Wednesday, Nov 12, 2025
• Up 25.99% from its 2025 closing low of 7679.48 hit Wednesday, April 9, 2025
• Month-to-date it is down 0.43%
• Year-to-date it is up 1502.41 points or 18.38%

Source: Dow Jones Market Data, FactSet