Major Indexes Close Lower as AI Stocks Remain Under Pressure; Jobs Report Looms

Will 2026 Be a ‘Lackluster’ Year for the Stock Market

58 minutes ago

The stock market defied expectations again this year. One Wall Street analyst is telling investors not to expect it to happen in 2026.

“Our year-end target is pretty lackluster,” said Savita Subramanian, Head of U.S. Equity and Quantitative Strategy at Bank of America, on CNBC Monday. Subramanian’s team predicts the S&P 500 will finish next year at 7100, just 4% above today’s close—a pessimistic forecast by Street standards.

The S&P 500 has gained about 16% so far this year, putting the benchmark index on track to post its third straight year of double-digit gains. Like last year, strength in tech shares, and those of other companies exposed to the AI boom, has been the driving force behind this year’s gains.

Subramanian expects earnings to grow at a healthy clip next year, a reflection of a surprisingly resilient economy that’s weathered soaring inflation, elevated interest rates, and an unpredictable global trade war. But Subramanian predicts multiples will contract next year as investors’ growth expectations moderate. 

The run-up in AI stocks may become a headwind next year. The high valuations of mega- and large-cap tech stocks is one of the reasons Vanguard recently forecast the S&P 500 would average mid-single-digit returns over the next decade or so.

Subramanian on Monday said “buy-the-dream” AI stocks are “maybe headed for a little bit of an air pocket.” The AI trade has been pressured recently by concerns that tech companies are spending too much on a technology with uncertain commercial potential. Subramanian acknowledged similarities between today’s market and the Dotcom Bubble of the 1990s, but noted that several factors, including tech’s strong earnings, make today’s setup less risky. 

Read the full article here.

–Colin Laidley

These Experts Have 6 Top Internet Stock Picks Lined Up for Next Year

2 hr 29 min ago

Jefferies has some ideas about where tech investors should look after a tough stretch for the sector.

Tech stocks took a hit last week, with cloud computing giant Oracle (ORCL) and chipmaker Broadcom (AVGO) at the forefront after quarterly earnings that failed to impress investors amid growing skepticism around the AI trade. But Jefferies analysts told clients amid Thursday’s selloff that they still see gains for some standouts in the sector, which they identified for their “peer-leading growth” and strong fundamentals.

All but one of the stocks Jefferies highlighted have already seen big gains 2025, outperforming both the S&P 500 and industry peers. Here are the analysts’ ideas.

One of Jefferies’ top picks is adtech company AppLovin (APP). Though the stock’s torrid rise was wracked by short-seller allegations of sketchy practices earlier this year, it has still more than doubled in value in 2025, reaching a fresh high near $725 last week.

Jefferies said it sees more gains ahead, with AppLovin expected to make a change in the first half of 2026 that would dramatically expand its business by opening up access to its referral-based advertising platform to more customers. Even among Wall Street’s biggest AppLovin bulls, few are quite as bullish as Jefferies, however, with a Street-high target of $860 suggesting nearly 30% upside from Friday’s close.

Read the full article here.

–Kara Greenberg

What to Expect From Tuesday’s Jobs Report

3 hr 2 min ago

A long-delayed hiring report will probably confirm the job market kept cooling this autumn.

On Tuesday, the Bureau of Labor Statistics is expected to release data showing that U.S. employers added 50,000 jobs in November and that the unemployment rate rose to 4.5%, its highest level since 2021, according to a survey of forecasters by Dow Jones Newswires and The Wall Street Journal. The report will also likely show the economy lost jobs in October due to mass layoffs of federal workers, several economists said.

These findings would underscore the Fed’s concerns that the job market has slowed sharply and risks a serious surge in unemployment. The Fed is tasked by Congress with a dual mandate to keep inflation low and employment as high as possible. Fed officials have cut the central bank’s key interest rate at its last three meetings in an effort to encourage spending and boost hiring.

“We believe it will be increasingly clear that the ‘maximum employment’ side of the Fed’s mandate is in jeopardy,” economists at Wells Fargo Securities led by Sarah House wrote in a commentary.

Read the full article here.

–Diccon Hyatt

Google Is Testing New Home Listing Features in Search. Why That Could Be Bad News for Zillow

3 hr 36 min ago

Google is getting deeper into the home listings game, in what could mean more competition for Zillow and other real estate sites.

Shares of Zillow Group (Z), which claims to be the most visited real estate website in the U.S., tumbled over 10% Monday after Alphabet’s (GOOGL) Google began testing full home ads in its search results, including links to request tours and agent contacts.

Other companies with home listing sites such as CoStar (CSGP) and Rocket Companies (RKT) also saw their stocks lose ground.

Goldman Sachs analysts told clients Monday that while they “don’t expect a direct near-term impact on Zillow’s business, given that most of Zillow’s traffic is direct (e.g., Zillow.com, StreetEasy.com, mobile apps) and Google’s new product is currently limited to select markets and mobile browsers, we view this development as a long-term risk for real estate portals like Zillow.”

With Monday’s losses, shares of Zillow are down about 8% for the year, while CoStar shares have lost about 12%. Rocket Companies shares have lost over 60% of their value in 2025.

–Bill McColl

Elon Musk’s SpaceX Could Be Preparing for a Huge IPO. Here’s What to Know

3 hr 55 min ago

Wall Street may be headed for a year of blockbuster IPOs in 2026. And a company led by Elon Musk could be leading the way.

Musk’s SpaceX is reportedly hearing pitches this week from investment banks interested in advising on what could be the largest initial public offering in history, The Wall Street Journal reported on Monday. That news advanced reports that the space exploration company was considering going public from last week, when Bloomberg said SpaceX is targeting a mid-to-late 2026 IPO that would raise $30 billion and value the company at about $1.5 trillion, among the biggest companies in the S&P 500.

If SpaceX hits its IPO targets, it would surpass Saudi Aramco, the Saudi state-owned oil company, as the largest debut in history. Aramco raised about $29 billion when it went public in 2019. (SpaceX is reportedly in the process of buying insider shares at a price that values it at $800 billion, double its valuation from this summer.) The company didn’t respond to Investopedia’s request for comment in time for publication.

SpaceX stock can’t be traded yet, but some market watchers are already betting on a big response from investors when it can. Saudi Aramco debuted with a market capitalization of nearly $1.9 trillion; users of online prediction market Polymarket on Monday put the chance of SpaceX’s market cap finishing its first day of trading above $2 trillion at about 14%.

A listing of that size would make SpaceX founder and CEO Elon Musk, already the world’s richest person, even wealthier. Musk’s SpaceX stake accounts for more than a quarter of his $470 billion fortune, according to Bloomberg, which estimates that he owns about 42% of the company. Holding a stake anywhere close to that size when SpaceX goes public could make Musk the world’s first trillionaire far earlier than some thought possible.

Read the full article here.

–Colin Laidley

Crypto-Tied Stocks Sink Along With Bitcoin

4 hr 6 min ago

Bitcoin and Ethereum are having a rough day. So are cryptocurrency-tied stocks.

Shares of Strategy (MSTR), MARA Holdings (MARA), and Coinbase Global (COIN) sank a respective 7%, 5.5%, and 5% in recent trading, while Robinhood Markets (HOOD) was down some 2%.

Bitcoin and Ethereum were down sharply at about $85,750 and $2,915, respectively.

The Rally for Cannabis Stocks Grinds to a Halt Amid Uncertainty About Trump Order

4 hr 33 min ago

Weed stocks aren’t flying so high anymore.

Shares of Tilray Brands (TLRY) dropped nearly 5%, Canopy Growth (CGC) slipped 3%, and other cannabis stocks also lost ground in recent trading, reversing early gains amid hopes President Trump could issue an executive order reclassifying marijuana.

The order, seen changing marijuana from a Schedule I to a Schedule III drug, was expected as soon as today, according to reports late last week. Schedule I drugs, such as heroin and LSD, are considered more dangerous compared to Schedule III drugs, a category which includes steroids.

A White House spokesperson told Investopedia Monday afternoon that no final decisions have been made.

Read the full article here.

–Bill McColl

ServiceNow Stock Plunges to Lead S&P 500 Decliners on Monday. Here’s Why

5 hr 2 min ago

Shares of ServiceNow (NOW) sank Monday following a report the the AI-driven enterprise software provider was close to purchasing Internet of Things security startup Armis for as much as $7 billion.

Bloomberg reported the two companies are in advanced talks and an agreement may be announced soon. If it happens, the acquisition would be the largest ever by ServiceNow, Bloomberg said.

The addition of Armis would give ServiceNow access to the company’s cyber security platform that discovers, protects and manages all of its customers’ connected devices. 

ServiceNow shares were down more than 11% recently, pacing S&P 500 decliners on Monday and trading at their lowest level since April. The stock has lost more than a quarter of its value since the start of 2025.

Read the full article here.

–Bill McColl

Why Middle-Class Retirees Still Worry Despite COLA Increases

6 hr 4 min ago

Retirees now know the Social Security COLA for next year is 2.8%. Payments reflecting the increase begin in January 2026, but the modest bump of $56 per month, on average, won’t likely quell deeper concerns about the program among.

Many retired workers fear that their actual costs are rising faster than the adjustment, while those still in the workforce grapple with larger fears that Social Security won’t be there when they need it.

The Transamerica Center for Retirement Studies’ new report on the American middle class finds that almost half of those in their 50s and 60s list “Social Security being reduced or ceasing to exist” among their greatest retirement fears, with 4 in 10 expecting the program to be their primary source of income. That reliance, combined with years of headlines about solvency issues and policy debates, fuels persistent anxiety about retirement planning.

Then there are the anxieties about inflation. The annual COLA is designed to track rising prices, but many older households say it doesn’t reflect the prices they actually face (healthcare, transportation, housing, food, and utilities). Indeed, the Senior Citizens League estimates retirees have lost meaningful buying power since 2010, leading to widespread sentiment that 2.8% “isn’t enough” amid rising essentials. While COLAs certainly help, it can still feel like treading water for many.

Read the full article here.

–Adam Hayes

Tesla Stock Leads Nasdaq Gainers Following Upbeat Wedbush Note

6 hr 40 min ago

Tesla (TSLA) investors responded positively to the latest upbeat note by Dan Ives.

Shares of the EV maker jumped 4% Monday to lead Nasdaq gainers on a down day for the tech-heavy index following a note by Wedbush’s Ives, a Tesla bull.

Ives wrote that Tesla, which has a market capitalization of about $1.59 trillion, “could reach a $2 trillion market cap over the coming year and in a bull case scenario $3 trillion by the end of 2026…as full scale volume production begins of the autonomous and robotics roadmap. ”

Wedbush affirmed its “outperform” rating and $600 price target for the stock, which was trading around $477 late Monday morning, and touted the Elon Musk-led company’s Full Self-Driving (FSD) driver-assistance product.

“The AI valuation will start to get unlocked in the Tesla story and we believe the march to an AI driven valuation for TSLA over the next 6-9 months has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose for Musk & Co.,” the note said.

 With today’s gains, Tesla shares are up about 18% in 2025.

Roomba Maker iRobot Declares Bankrupty. Its Stock Is Plunging 70%

7 hr 44 min ago

Shares of iRobot (IRBT) plummeted over 70% Monday morning after the Roomba robot vacuum maker announced a Chapter 11 bankruptcy filing on Sunday.

The company said it plans to have one of its lenders and its primary contract manufacturer, a Chinese robotics firm called Picea, acquire 100% of its equity, with iRobot set to continue operating as a private company under Picea.

CEO Gary Cohen said the Chapter 11 filing and acquisition by Picea is a “pivotal milestone in securing iRobot’s long-term future” that will “strengthen our financial position and will help deliver continuity for our consumers, customers, and partners.”

Current Roomba users shouldn’t be impacted and their devices should work as normal, as iRobot said there is “no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support.”

A previous plan for iRobot to be acquired by Amazon (AMZN) faced increasing regulatory scrutiny in late 2023, with the deal falling apart when Amazon backed out in January 2024. At the time, iRobot replaced its CEO and said it would lay off 350 employees, about 30% of its workforce.

Read the full story here.

–Aaron McDade

Momentus Stock Plummets as Commercial Space Company Cancels Annual Meeting, Announces Reverse Split

8 hr 35 min ago

It’s never a good sign for a company’s shares when it announces a reverse stock split. Or cancels an annual meeting. Momentus (MNTS) did both Monday.

The San Jose, Calif.-based commercial space company announced “it has effectuated a 1-for-17.85 reverse stock split,” effective at 5 p.m. ET Wednesday. Momentus said its shares will continue to trade on the Nasdaq under the ticker symbol “MNTS,” and will begin trading on a split-adjusted basis at market open Thursday.

In addition, Momentus—which says it “offers commercial satellite buses, in-space infrastructure services, including in-space transportation, hosted payloads and in-orbit services”—canceled its special meeting of stockholders originally scheduled for Nov. 24, 2025 but was adjourned due to a lack of quorum until today.

Momentus shares plummeted nearly 30% to $0.59 each, near their 52-week low. The stock has lost more than 90% of its value this year.

Soccer Giant Juventus Stock Pops in Italy After Holding Company Rejects Tether Bid to Buy Entire Stake

10 hr 9 min ago

Shares of Juventus Football Club are soaring in Milan trading Monday. It has little to do with the team’s 1-0 win over Bologna yesterday.

Juventus stock popped 16% in recent trading after Exor, the holding company of the controlling Agnelli family, rejected stablecoin Tether’s all-cash proposal to purchase its entire stake in the club, which Tether said represents more than 65% of Juventus’ issued share capital.

On Friday, Tether said if Exor accepted its proposal, it intended “to proceed with a public tender offer for the remaining shares at the same price per share,” then would “invest 1 billion Euros in the support and development of the Club.”

However, on Saturday Exor said it “unanimously rejected” the proposal, and affirmed “its previous, consistent statements that it has no intention of selling any of its shares in Juventus to a third party.”

According to CoinMarketCap, Tether is the fourth-most-valuable cryptocurrency with a market capitalization of more than $186 billion.

Turin-based Juventus sits fifth in the 20-team Italian Serie A standings, seven points behind leader Internazionale. Juventus has won a record 36 Italian football championships.

Brad Jacobs Stepping Down From Chairman Roles at XPO, GXO Logistics

11 hr 5 min ago

Serial entrepreneur Brad Jacobs is a busy man. Now the QXO (QXO) chief executive and chairman has decided to more sharply focus his efforts.

Before the opening bell Monday, Jacobs—who has taken six companies public—announced he will be stepping down from his chairman roles at XPO (XPO) and its spinoff GXO Logistics (GXO), effective Dec. 31. He will serve as Senior Advisor to XPO through June 30, 2026.

“By transitioning out of my board positions at XPO and GXO, I can dedicate even more energy to QXO and Jacobs Private Equity,” Jacobs said. “We intend to grow QXO into a $50 billion revenue leader in building products distribution through accretive acquisitions and organic growth. XPO and GXO are in excellent shape and their prospects are very bright.”

Shares of GXO and XPO declined a respective 2% and less than 1% before the bell. Those of roofing and waterproofing products maker QXO were little changed.

Stock Futures Point Higher to Begin Week

12 hours ago

Futures contracts connected to the Dow Jones Industrial Average pointed 0.5% higher.

S&P 500 futures also were up 0.5%.

Nasdaq 100 futures advanced 0.5% as well.