S&P 500 drops below opening level, ends the day in the red

S&P 500 drops below opening level, ends the day in the red

The S&P 500 closed below its opening level on Monday, ending the day in the red. The index, which had previously closed above 6,600 for the first time in history, saw a significant drop after a series of geopolitical and economic developments. The S&P 500 fell by 0.3%, closing at 6,580.74 .

The primary driver of the market's volatility was the ongoing negotiations between the United States and China over TikTok's future. President Trump confirmed a preliminary deal with China, which saw Oracle stock rise over 3% as it emerged as the top contender to acquire TikTok . However, the deal is not yet finalized, and the U.S. ban on TikTok is still in effect. The stock market's reaction to this news was mixed, with investors uncertain about the final outcome of the negotiations.

Other factors contributing to the market's downturn included the ongoing probe by Chinese regulators into Nvidia for alleged anti-monopoly violations. Nvidia's stock dropped by 1.8%, reflecting investor concerns about potential regulatory challenges . Additionally, the Federal Reserve's policy meeting, scheduled for Wednesday, added to the market's uncertainty, with traders closely watching for any changes in interest rates.

Despite these challenges, Oracle's stock remained a focus for investors, up by 81% year-to-date. The company's strong performance is attributed to its cloud forecast, which sees revenue climbing to $144 billion by 2030, and its role in Trump's AI plans . However, the market's overall sentiment remained cautious, with the S&P 500 ending the day in the red.