The Dow Jones fell 1.2%, the S&P 500 closed down 0.9%, and the Nasdaq slipped 0.8%.
Major indexes ended in the red on Monday as the artificial intelligence sector faced a key test with Nvidia (NVDA) reporting earnings this week.
Trading volume on the New York Stock Exchange increased compared with the same time on Friday, resulting in another distribution day for the S&P 500. Nasdaq volume was lower.
Decliners outpaced advancers by more than 4-to-1 on the NYSE and more than 3-to-1 on the Nasdaq.
Market Awaits Nvidia Earnings
The stock market is looking ahead to Nvidia’s earnings.
Nvidia shares fell 1.9% on Monday. Wall Street expects Nvidia to report earnings of $1.25 per share and revenue of $54.8 billion, according to FactSet.
Nvidia will report its third-quarter results on Wednesday after the market closes.
The Federal Reserve will also publish minutes from its October meeting.
Fed Governor Christopher Waller supports an additional 25-basis-point rate cut at the December FOMC meeting. He views this as “additional insurance against a rapid weakening in the labor market and a move toward a more neutral policy stance.”
In October, the FOMC cut the policy rate by 25 basis points to 3.75%–4.00%, marking the second consecutive rate cut.
Waller said that despite the lack of government data, private-sector data still show declining labor demand, fewer job openings, and weaker wage pressures. He does not expect inflation to return due to lower-than-expected tariff impacts and weaker labor demand. Waller believes an additional cut is necessary, arguing that monetary policy is too restrictive and is affecting low- and middle-income groups.
As of 2025, the Fed has implemented two rate cuts, each of 25 basis points, at two meetings. The probability of a rate cut in December has fallen to 45% from 94% on October 17.
Ziihera Trial by Zymeworks
Zymeworks (ZYME) announced positive results from the Phase 3 trial of Ziihera as a first-line treatment for HER2-positive advanced gastroesophageal adenocarcinoma.
The trial, named “HERIZON-GEA-01,” was designed to evaluate Ziihera in combination with chemotherapy, with or without Tevimbra, compared with the control group receiving trastuzumab plus chemotherapy.
The data were released by Jazz Pharmaceuticals (JAZZ) and BeOne Medicines (ONC), two partners of Zymeworks.
The results reinforce the potential for Ziihera to become the preferred HER2-targeted agent in the treatment of early-stage gastroesophageal adenocarcinoma.
Jazz plans to present the results at a major medical meeting in early 2026, publish them in a peer-reviewed journal, and rapidly seek inclusion in the NCCN Guidelines.
Zymeworks is eligible for additional legally and commercially significant milestone payments, along with tiered royalties on future Ziihera sales.
Lithium prices surge
Lithium prices in China jumped sharply after the Chairman of Ganfeng Lithium forecasted that lithium demand will grow 30% by 2026.
Lithium stocks rallied across the board:
- Albemarle (ALB) +2.2%
- Lithium Americas (LAC) +7%
- Lithium Argentina (LAR) +5.6%
- Standard Lithium (SLI) +5.5%
- Sigma Lithium (SGML) +32.3%
Lithium carbonate futures on the Guangzhou Exchange rose 9% to 95,200 CNY/ton (~USD 13,400), the highest level since June 2024.
Ganfeng’s CEO forecasts that lithium carbonate prices could exceed 150,000–200,000 CNY/ton, while supply is unlikely to keep up even though the market is currently oversupplied by ~200,000 tons.
Delays in reopening CATL’s Jianxiawo lithium mine have also contributed to the price increase.
