Market Retreat: S&P 500 Pulls Back from Record Highs

The S&P 500 experienced a notable decline on Monday, giving back some of the substantial gains achieved during a record-setting November. The benchmark index shed approximately 0.6%, settling near the 6,810-point level. Investor sentiment was dampened by a combination of disappointing U.S. manufacturing data and a sharp upward move in Treasury yields.

This sell-off occurs ahead of a data-heavy week that will be closely scrutinized by the Federal Reserve. Key reports, including JOLTS job openings and the pivotal Non-Farm Payrolls release on Friday, are on the docket. These figures will be among the last major data points before the Fed enters its customary blackout period preceding the December 10 policy meeting.

Bond Yields and Manufacturing Data Drive Volatility

The immediate catalyst for the pullback was the midday release of the ISM Manufacturing PMI. The index registered 48.2 points, missing the consensus forecast of 48.6 and signaling a continued contraction within the industrial sector. Concurrently, the yield on the benchmark 10-year U.S. Treasury note jumped 6 basis points to 4.08%. This sudden tightening of financial conditions fueled market volatility, sending the VIX "fear index" soaring by 11.5% to a level of 18.23.

Select Stocks Defy the Broader Sell-Off

Despite the widespread retreat, several individual equities posted significant gains, moving against the prevailing market trend.

Should investors sell immediately? Or is it worth buying S&P 500?

Leading Advancers:
* Intel (INTC): Shares surged 10.2%, driven by renewed optimism for its foundry business and speculation regarding Apple's supply chain.
* Synopsys (SNPS): The stock advanced 7.1% following an announcement of a deepened AI partnership with Nvidia.
* Twin Vee PowerCats (VEEE): Gained 7.3% on elevated trading volume.

Notable Decliners:
* Eli Lilly (LLY): Fell 2.6% under pressure after price reductions for its weight-loss drug, Zepbound.
* Coinbase (COIN): Dropped 4.9%, pulled lower by a setback in Bitcoin's price.
* Symbotic (SYM): Declined 4.0% after an analyst downgrade citing valuation concerns.

Technical Perspective: Key Support Levels Tested

From a chart analysis standpoint, the early breach of the 6,850-point level provided short-term momentum for bearish traders.
* Support: Market attention is now focused on the 6,780-point zone. A daily close below this level could open a path toward 6,715.
* Resistance: The day's high at 6,849 points now forms the initial barrier for any recovery attempt.
* Momentum: The 14-day RSI has cooled from overbought territory to approximately 58, indicating a momentum-driven correction. The index continues to trade well above its rising 50-day moving average (~6,700), leaving the medium-term uptrend intact.

Global Pressures Emerge

The selling pressure was not confined to U.S. markets. Weak manufacturing figures also weighed on European exchanges, with Germany's DAX index falling 0.8%. Bond market dynamics are acting as the primary driver across regions, as investors reposition portfolios ahead of crucial economic releases.