Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed Monday’s trading session in negative territory ahead of the Fed interest rate decision on Wednesday.
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The Trump administration is planning to cut the size of the government workforce with an emphasis on eliminating “woke” programs, according to an Office of Management and Budget (OMB) memo. The memo detailed plans to cut funding to programs that support diversity, equity, and inclusion (DEI), open borders, and gender ideology in a bid to cut costs.
“The President’s Management Agenda will deliver and maintain operational control of the Government paving the way to implement the President’s promises to end weaponized Government and restore a commitment to the Constitution,” read the memo.
Furthermore, Trump is set to sign an executive order later this week that would consolidate AI regulations under one federal framework and eliminate state-by-state laws on the industry. “We are beating ALL COUNTRIES at this point in the race, but that won’t last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS,” Trump said in a Truth Social post.
The news comes amid reports that the U.S. Commerce Department is set to approve shipments of Nvidia’s (NVDA) H200 chips to China. Trump administration officials view the move as a compromise, as the government had previously blocked Nvidia from sending its more advanced Blackwell chips to the country. The H200 is roughly six times more powerful than the H20 chip, which is currently the most sophisticated AI semiconductor that can be exported to China, according to the Institute for Progress.
Elsewhere, the Federal Reserve Bank of New York’s Survey of Consumer Expectations for November showed one-year median inflation expectations unchanged at 3.2%. At the same time, consumers expect medical costs to rise by the highest amount since 2014, with a median expectation for a 10.1% rise during the next year. In addition, 24.8% of households expect their financial situation to be somewhat worse in one year, up from 23.3% in October.
Finally, Oppenheimer raised its 2026 S&P 500 (SPX) price target to a street-high of 8,100, beating out Deutsche Bank at 8,000. The price target implies upside of about 18% from current levels, driven by strong economic growth and lower rates. Furthermore, the firm’s price target is based on a 2026 EPS estimate of $305 and a forward price-to-earnings (P/E) ratio of 26.5x compared to 23x today.
The S&P 500 (SPX) closed with a 0.35% loss, while the Nasdaq 100 (NDX) fell by 0.25%.
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