The S&P 500 and Nasdaq Composite pulled back from record highs Monday, with tech shares struggling and investors looking ahead to key inflation data due out this week.

The broad market index fell 0.61% to close at 6,052.85, and the tech-heavy Nasdaq slid 0.62% to end at 19,736.69. The Dow Jones Industrial Average shed 240.59 points, or 0.54%, settling at 44,401.93.

Nvidia shares dropped about 2.6% on the heels of a Chinese regulator announcing that it is investigating the artificial intelligence chip darling for potentially violating the country's antimonopoly law. The stock has been a bellwether for the AI trade, up more than 180% in 2024.

Advanced Micro Devices, another chipmaker, closed 5.6% lower after Bank of America downgraded the stock to neutral from buy, with the bank citing its limited market share gain potential as a result of "higher competitive risks in AI against best-of-breed NVDA's dominance." Tech giants Meta Platforms and Netflix also struggled.

The price of bitcoin retreated as well, a sign that investors are moving away from risk-taking. The cryptocurrency topped $100,000 for the first time ever on Wednesday evening last week.

The moves come after the S&P 500 and Nasdaq closed at fresh records Friday, rising about 1% and 3.3% for the week, respectively. The Dow was the lone laggard, closing the week down 0.6%.

"In general, you still have an upward trajectory in the market because of the favorable seasonals, etc.," Sam Stovall, chief investment strategist at CFRA Research, told CNBC. He added that news such as China's investigation into Nvidia will "provide some hurdles along the way, but I don't think [that] will upend the advance through year-end."

"It will continue to climb a wall of worry this year and end up surpassing the advance that we saw last year," the strategist continued.

The November consumer price index, due out Wednesday, is expected to show a slight uptick in pricing pressures. Economists polled by Dow Jones expect a rise of 0.3% and 2.7% on a monthly and annual basis, respectively. That would be up from respective increases of 0.2% and 2.6% in the prior month.

Stocks finish in the red

All three major averages closed lower on Monday.

The S&P 500 and Nasdaq Composite each fell 0.6%, closing at 6,052.85 and 19,736.69, respectively. The Dow Jones Industrial Average dropped 240.59 points, or 0.5%, to settle at 44,401.93.

— Sean Conlon

Holiday season on track to hit record highs, says Truist Securities

This year's holiday shopping season is poised to generate big gains, according to Truist Securities.

"We expect this Holiday Season to hit a record high for U.S. eCom and Digital Ad spending, driven by a resilient consumer buoyed by healthy employment and income growth, and by more efficient digital channels fine-tuned by two years of pandemic and advancements in AI," analyst Youssef Squali wrote to clients Monday.

"3P tracking shows that aggregate QTD holiday spending is off to a strong start, and our own tracking of AMZN shows in-line to slightly better than expected results (thru 12/2) with the company set to claim ~49% share of U.S. ecom (our est.)," he added.

Along with Amazon, Squali said he expects this season's momentum to be reflected in other companies, citing Meta, Trade Desk and Alphabet as the biggest beneficiaries.

— Sean Conlon

Unpredictable risks may leave markets vulnerable, says UBS

The market has managed to shake off the numerous unpredictable political and geopolitical events over the past few weeks.

"With relatively few identifiable risk events before President-elect Trump assumes office on 20 January, and unexpected events unknowable by definition, the rally could easily continue well into 1Q," chief investment officer Americas Jason Draho wrote in a Monday note.

However, Draho added that while this is "great for holiday spirit," it does leave the market more vulnerable to even small risks happening.

The investor cited two upcoming risk events: November's consumer price index slated for release on Friday and the Federal Reserve's policy meeting next week.

— Hakyung Kim

A TikTok ban could boost shares of Snap and Meta, Deutsche Bank says

Last week, a federal appeals court upheld a law that gives ByteDance until January to sell TikTok. While it remains to be seen if the app is indeed taken off app stores by Jan. 19, Deutsche Bank analyst Benjamin Black analyzed the potential ramifications such a move might have on TikTok's competitors.

"We calculate that every 10% shift of total TikTok U.S. engagement to its competitors drives an incremental $5 in value/share for Snap (44% upside from Friday's open), $10/share (2% upside) for Meta, with the impact to Alphabet insignificant given the lower relative margins for YouTube, and the fact that the lion's share of GOOG's value is tied back to Search," the analyst wrote in a Monday note.

— Lisa Kailai Han

Boeing's rally supports Dow

A strong performance from Boeing is helping the Dow outperform other large-cap averages on Monday.

The aerospace manufacturer was up 3.4% in afternoon trading, making it the best performer in the 30-stock Dow. If the rally holds, it would be the best performance for Boeing's stock since a 4.1% gain on Nov. 22. The stock also now has a positive return month to date.

Another bright spot for the Dow was UnitedHealth Group, up 2.4%.

— Jesse Pound

Gold prices reach fresh highs on renewed China buying, Fed rate cut enthusiasm

Gold prices hit two-week highs on Monday on renewed buying by China's central bank. Anticipation of a U.S. Federal Reserve interest rate cut next week also added to bullishness around the commodity.

Spot gold gained 1.2% to $2,665.39 per ounce. U.S. gold futures added 1.1% to $2,688.40.

"The most important factor is news that People's Bank of China reported that it again resumed its gold purchases … the market is getting hopeful that we could see other central banks follow suit and we could see a resumption of record territory buying," Bart Melek, head of commodity strategy at TD Securities, told Reuters.

Read more on gold's moves here.

— Pia Singh, Reuters

AppLovin on track for worst day since 2022

Shares of AppLovin fell more than 11% in afternoon trading, putting the stock on pace for its worst day since May 24, 2022, when the stock fell 12.8%. Earlier in the session, the stock had fallen around 15%, putting it on pace for its largest percentage decrease on record.

The move comes after Barron's reported on Friday that the company was a leading candidate to join the S&P 500 in its quarterly rebalance. However, the name was not among those chosen to join the index, per S&P Global's announcement later Friday. During that day's trading, the stock rose nearly 6%, hitting a new 52-week high.

AppLovin has also had a monster year, with shares surging more than 793% year to date and more than 312% over the past three months.

— Sean Conlon

Hershey, Apollo among stocks making biggest midday moves

Check out the companies making headlines in midday trading:

• Hershey, Mondelez International — Hershey shares jumped roughly 13% after Bloomberg News reported that Cadbury and Oreo maker Mondelez is again trying to buy the chocolate company. News of the attempted takeover put Hershey shares on pace for their best day since June 2016, when Hershey previously publicly disclosed a $23 billion bid from Mondelez. Mondelez fell 2%.
• Workday, Apollo Global Management — Shares of software firm Workday jumped 5% after S&P Dow Jones Indices announced the stock would be added to the S&P 500 later this month. Apollo Global Management was also announced as a new S&P 500 addition and hit a new 52-week high on Monday, but the stock was down about 2%.
• Macy's — The stock gained 1% following activist investor Barington Capital's call for the department store chain to cut spending and reevaluate alternatives for its Bloomingdale's and Bluemercury operations.

For the full list, read here.

— Pia Singh

Hershey heads for best day since 2016

Hershey shares popped nearly 14% and headed for their best day in eight years on a Bloomberg News report that Mondelez International is weighing acquiring the chocolate company.

If Hershey closes at these levels, it would mark the stock's best day since June 30, 2016, when the company previously rejected the Oreo maker's $23 billion bid. Shares up more than 6% year to date.

Mondelez shares slipped about 2%.

— Samantha Subin

Solar stocks rally

Solar names surged on Monday, sidestepping the broader market's downtrend.

The Invesco Solar ETF (TAN) jumped more than 5%. The Global X Solar ETF (RAYS) surged more than 6%.

SolarEdge surged 17% after announcing it had begun shipping a domestically produced battery. With this product, the company said it has a portfolio that qualifies for a bonus credit focused on domestic content in the U.S.

Canadian Solar and Array Technologies also gave the group upward momentum, with both jumping more than 8% in the session.

— Alex Harring

Energy stocks outperform

Energy stocks bucked the S&P 500's downturn on Monday.

The sector of stocks within the S&P 500 rose about 0.7%. By comparison, the broad index as a whole slid 0.4%.

APA led the energy sector higher with a gain of just more than 5%. Occidental Petroleum and Valero Energy were the next-biggest gainers, as each rose 2.7%.

Materials and health care were the only two other sectors within the S&P 500 tracking for gains on Monday. Communication services was the worst performer, on the other hand, with a loss of more than 1%.

— Alex Harring

December inflation report, Fed meeting will set the tone for Wall Street in the short term, says Bank of America

What's left of the final month of trading in 2024 will largely be influenced by the final Federal Open Market Committee meeting and U.S. Consumer Price Index report of the year, according to Bank of America.

"We believe the two remaining major events of the year (CPI and FOMC) can set the near-term direction of the market," analyst Gonzalo Asis wrote Sunday. "A softer print can clear the path for a year-end rally, with the second half of December being the second strongest period of the year, up 1.0% on average."

"On the contrary, a firmer print can revamp volatility, especially after the 5% post-election rally," the analyst added.

— Brian Evans

Hershey shares jump on talk of potential offer from rival chocolate maker Mondelez

Hershey shares jumped about 14% on a Bloomberg report that Mondelez, the owner of Cadbury and Toblerone chocolate, was considering making an offer to buy its rival. If the news sounds like deja vu, there is a good reason. Mondelez has been down this road before.

Any bid to buy Hershey must win the approval of the Hershey Trust, which has 80% voting power at the company. The trust was created to help fund the Milton Hershey School, and has scuttled past acquisition attempts. However, the trust has been diversifying its holdings in recent years, which could potentially open the door to a different outcome this time. The Bloomberg report, which cites people familiar with the matter, said talks are early and may not result in an offer. CNBC has reached out to the Hershey Trust for comment.

— Christina Cheddar Berk

S&P 500 addition could improve Apollo stock 'durability,' says Wells Fargo

Financial stock Apollo Global Management is set to join the S&P 500 in two weeks, and that move could help the stock even if it does not result in a big price jump, according to Wells Fargo.

"Index related buying equates to approximately 17 days of the stock's typical trading volume. While APO's passive ownership % is set to rise, the near-term price bump will be less than the buying demand implies as the add was substantially priced in and the buying pressure represents a churn from short-term investors playing the add. Still, broadening of the shareholder base should improve the stock price's durability for the long run," analyst Michael Brown said in a note to clients.

Workday is also joining the S&P 500 along with Apollo. Those stocks are replacing Amentum Holdings and Qorvo, respectively, which are both sliding down to the S&P SmallCap 600.

The changes take effect prior to the open of trading on Dec. 23.

— Jesse Pound

Nasdaq opens lower following Nvidia investigation announcement

The Nasdaq Composite fell 0.3% Monday morning.

The S&P 500 also fell 0.2% in morning trading, while the Dow Jones Industrial Average gained 47 points, or 0.1%.

— Sean Conlon

Tactical indicators are flashing mixed signals about the market, says Canaccord Genuity

The narrowing of the market rally last week is sending mixed signals for stocks, according to Canaccord Genuity.

"Our shorter-term indicators show a deterioration in SPX breadth, coupled with increased market complacency," analyst Michael Welch wrote in a Monday note. "At the same time, our two intermediate-term indicators moved in opposite directions; the market's overbought condition increased while our gauge of sentiment pulled back."

The S&P 500 moved about 1% higher last week. That weekly gain added to the index's year-to-date gains of more than 27%.

— Sean Conlon

See the stocks moving before the bell

These are some of the stocks moving before the bell on Monday:

• Nvidia — Shares slid 2% after China said a regulatory body launched an investigation into the chipmaker over antimonopoly concerns.
• Reddit — The social media platform popped about 5% on the heels of an upgrade to overweight from equal weight at Morgan Stanley. 
• Palantir Technologies — Shares advanced more than 6% after the software platforms company said it expanded its contract with the U.S. Special Operations Command. The contract is valued at nearly $37 million.

Click here for the full list.

— Alex Harring

Bank of America sees 18% upside ahead for Ralph Lauren on resilient consumer base

There is continued upside ahead for Ralph Lauren, according to Bank of America.

Analyst Christopher Nardone reiterated his buy rating on the fashion stock, simultaneously lifting his price objective to $267 from $255. This updated forecast is approximately 18% higher than were shares closed on Friday.

Following a series of investor meetings with the company's executives, Nardone wrote that he was optimistic about the company's near- and long-term prospect.

"We expect the momentum from last quarter will continue and the brand to capitalize on strong brand heat this holiday season across the globe," he wrote.

As an additional catalyst, Nardone added that the company's core consumer base remains very resilient and expects Ralph Lauren to continue to focus on this base, with women's as the company's largest opportunity.

Meanwhile, Nardone wrote that Ralph Lauren could see further margin expansion from here. The company has continued to demonstrate a willingness to invest for the long term, such as through launching a new multiyear systems upgrade.

"We expect continued AUR gains and lower cotton costs will help drive further GM expansion and more than offset headwinds from labor, non-cotton product costs, and freight," he elaborated. "This coupled with the recent stabilization of N.A. wholesale and leverage on recent investments should help drive margin expansion beyond the 15% ccy target over the medium term."

Shares of Ralph Lauren have surged 60% in 2024.

— Lisa Kailai Han

Nvidia shares slide following Chinese antimonopoly investigation announcement

Nvidia shares dropped more than 2% during Monday premarket trading after a Chinese regulator said the chipmaker was being investigated for potential violations of antimonopoly law.

The Chinese government said on Monday that its State Administration for Market Regulation launched a probe into Nvidia. It comes amid a big year for shares, with the stock up more than 187% in 2024.

— Alex Harring, Samantha Subin

Hong Kong stocks jump nearly 3% as China announces more stimulus measures, policy easing

Hong Kong's Hang Seng index jumped 2.75% in its final hour of trade after China vowed to boost domestic consumption with "more proactive" fiscal measures and "moderately" looser monetary policy next year.

Before the news, mainland China's CSI 300 index fell 0.17% to close at 3,966.57 after China's consumer price growth fell below expectations in November.

South Korea's benchmark Kospi stock index fell 2.78% to 2,360.58, while the small-cap Kosdaq dropped 5.19% to 627.01 after President Yoon Suk Yeol survived an impeachment vote over the weekend and fallout from his brief declaration of martial law continues to roil the country.

Japan's Nikkei 225 climbed 0.18% to end the day at 39,160.5, while the Topix gained 0.27% to 2,734.56 after Japan's third-quarter gross domestic product was revised to 0.3% on a quarter-on-quarter basis.

Australia's S&P/ASX 200 ended marginally higher at 8,423.

— Dylan Butts

European markets open higher

European markets opened higher on Monday, kicking off the new trading week on a positive note.

The pan-European Stoxx 600 was up 0.33% at 8:07 a.m. London time, with almost all sectors trading in the green. Mining stocks led gains, adding 1.5%.

Major indexes across the region also rose, with France's CAC 40 adding around 0.8%, the U.K.'s FTSE 100 adding 0.33% and Germany's DAX rising 0.15%.

— Sophie Kiderlin

Key inflation data due out this week

The November consumer price index due out Wednesday is expected to show a slight uptick in pricing pressures.

Economists polled by Dow Jones expect a 0.3% and 2.7% monthly and yearly increase, respectively. That would be up from 0.2% and 2.6%, respectively, from the prior month.

— Sarah Min

Stock futures open little changed

Stock futures opened little changed Sunday night.

Dow Jones Industrial Average futures fell 15 points, or 0.03%. S&P 500 futures and Nasdaq 100 futures dipped 0.05% and 0.12%, respectively.

— Sarah Min