On Monday local time, the US stock market closed lower. As of the close, the Dow Jones Industrial Average fell 0.16% to 35333.47 points, the S&P 500 Index fell 0.2% to 4550.43 points, and the Nasdaq fell 0.07% to 14241.02 points.
IRobot, a robotic vacuum cleaner company, plunged during the trading session, falling more than 20% at its deepest point and triggering multiple trading suspensions, ultimately closing down more than 17%, marking its worst daily performance since January 2021. On the news side, Amazon's $1.4 billion acquisition of iRobot is likely to fail unless the two companies address a series of competition issues emphasized by EU antitrust agencies.
This week, global financial markets will usher in a series of important events. The core PCE data, which is considered an important indicator of inflation by the Federal Reserve, will be released on Thursday, providing clues on when the Fed will end interest rate hikes. In addition, this week the United States will also release its November Consumer Confidence Index, revised GDP data for the third quarter, and the Federal Reserve's Brown Book on Economic Conditions. Meanwhile, OPEC+will also hold a meeting to discuss the issue of oil production reduction.
US stocks closed lower
On Monday local time, the three major US stock indexes opened slightly lower and ultimately closed lower collectively. As of the close, the Dow Jones Industrial Average fell 56.68 points, or 0.16%, to 35333.47 points; The S&P 500 index fell 8.91 points, or 0.2%, to 4550.43 points; The Nasdaq fell 9.83 points, or 0.07%, to 14241.02 points.
On the market, most large technology stocks fell, with Apple down 0.09%, Amazon up 0.67%, Netflix down 0.08%, Google down 0.2%, Facebook down 1.04%, and Microsoft up 0.31%.
Bank stocks generally fell, with JPMorgan Chase down 0.27%, Goldman Sachs down 0.42%, Citigroup down 0.35%, Morgan Stanley down 0.89%, Bank of America down 0.55%, and Wells Fargo up 0.23%.
Popular Chinese concept stocks generally fell, with the Nasdaq China Golden Dragon Index falling by 1.58%, Douyu falling by 8.63%, Tiger Securities falling by 8.23%, and Huya Live falling by 7.4%; In terms of growth, Shangcheng Technology rose 10.37%, Yihang Intelligence rose 8.19%, and Shanda Technology rose 4.62%. Zhonggai New Energy Vehicle stocks collectively fell, with NIO Automobile falling 2.97%, Xiaopeng Automobile falling 4.11%, and Ideal Automobile falling 3.78%.
In the European market, the three major stock indexes closed slightly lower, with the German DAX index falling 0.39% to 15966.37 points; The French CAC40 index fell 0.37% to 7265.49 points; The FTSE 100 index in the UK fell 0.37% to close at 7460.7 points.
Is there a variable in Amazon's acquisition? IRobot's stock price plummets
On Monday local time, iRobot, a robotic vacuum cleaner company, plunged into the trading session, falling more than 20% at its deepest point and triggering multiple intraday trading suspensions due to excessive volatility. It ultimately closed down more than 17%, marking its worst single day performance since January 2021.
On the news side, Amazon's $1.4 billion acquisition of iRobot is likely to fail unless the two companies address a series of competition issues emphasized by EU antitrust agencies. The European Commission issued a so-called opposition statement on Monday, warning Amazon that the proposed transaction may harm the manufacturing and supply markets of robotic vacuum cleaners, and allowing the e-commerce giant to strengthen its position in the online market and other data related services market.
Amazon stated that the company focuses on resolving antitrust concerns from the European Union regarding its acquisition of iRobot.
Last August, Amazon announced that it would acquire iRobot in cash for $61 per share, with a total transaction price of approximately $1.7 billion, including iRobot's net debt. However, in late July this year, the two companies announced that they had agreed to reduce the acquisition price by about 15%. According to the revised agreement, Amazon will acquire iRobot for a total value of approximately $1.4 billion at a price of $51.75 per share.
Last week, due to news that European regulatory agencies would approve Amazon's acquisition of iRobot, the stock surged nearly 40% on the day.
Outlook for this week: The Federal Reserve's favored inflation indicators will be released
This week, the global market will welcome multiple financial events, including the release of core PCE data, which is considered an important indicator of inflation by the Federal Reserve, OPEC+holding a meeting to discuss oil production cuts, and the Federal Reserve's release of the Brown Book on Economic Conditions.
This Thursday, the US October PCE data will be released, providing clues on when the Federal Reserve will end interest rate hikes. According to the forecast, the monthly rate of PCE price index in October is expected to be 0.1%. Compared to the previous month, it was 0.4%. Meanwhile, the core PCE annual rate, excluding food and fuel costs, is expected to decrease from 3.7% to 3.5%.
In addition, this week, the United States will also release November consumer confidence index, revised GDP data for the third quarter, and the Federal Reserve's economic status brown book. At the same time, Federal Reserve Chairman Powell will also speak again, and these events are expected to provide more information about the current state and future trends of the US economy.
This week, an OPEC+meeting will also be held. Due to the inability of Saudi Arabia and OPEC member countries to reach an agreement on oil production quotas, the OPEC+meeting originally scheduled for last weekend has been postponed to November 30th and changed to an online format. The latest news is that Saudi Arabia and member states have not yet reached an agreement. Saudi Arabia is demanding that other oil producing countries reduce their own oil production quotas, but some oil producing countries do not support it.
In addition, the eurozone will release inflation data on Thursday, and analysts expect price pressures in the region to weaken again in November.