Stocks are set to round out a dismal monthly performance in December after two consecutive losing weeks. So far, the Dow is set to end the month more than 3% lower, and the S&P 500 is down nearly 4.5% in the same timeframe. The Nasdaq Composite is on track to fall 5.4% this month.
Investors will also be watching for a few earnings reports due later in the week.
“Rates and inflation may have peaked but we see that as a warning sign for profitability, a reality we believe is still underappreciated but can no longer be ignored,” wrote Michael Wilson, equity strategist at Morgan Stanley, in a Monday note.
