• Nvidia falls after Chinese regulator launches antitrust probe
• Hershey jumps after report that Mondelez exploring acquisition
• Indexes down: Dow 0.54%, S&P 0.61%, Nasdaq 0.62%

Dec 9 (Reuters) - Wall Street's main indexes closed lower on Monday, driven by a drop in AI leader Nvidia that weighed on tech stocks, as investors looked ahead to a crucial inflation report set for later this week.

Nvidia (NVDA.O) , opens new tab fell 2.5% after China's market regulator launched an investigation into the chipmaker over suspected violation of antimonopoly law, dragging the information technology sector (.SPLRCT) , opens new tab down 0.45%.

Advanced Micro Devices (AMD.O) , opens new tab slipped 5.7% after BofA Global Research downgraded its rating on the stock, weighing on the Philadelphia Semiconductor Index (.SOX) , opens new tab, which slipped 0.87%.

"The market was taken a bit by surprise regarding China's investigating (Nvidia) as a possible antimonopoly-law violation. So that's one thing that's putting a little damper on the market," said Sam Stovall, chief investment strategist at CFRA Research in New York.

The Dow Jones Industrial Average (.DJI) , opens new tab fell 240.59 points, or 0.54%, to 44,401.93, the S&P 500 (.SPX) , opens new tab lost 37.42 points, or 0.61%, to 6,052.85 and the Nasdaq Composite (.IXIC) , opens new tab lost 123.08 points, or 0.62%, to 19,736.69.

Nine out of 11 S&P 500 sectors lost ground, led by declines in financial stocks.

Comcast (CMCSA.O) , opens new tab slid 9.5% after forecasting a loss of more than 100,000 broadband subscribers in the fourth quarter, denting the communication services sector (.SPLRCL) , opens new tab by 1.3%.

Shares of Hershey (HSY.N) , opens new tab surged 10.9% following a media report that Cadbury parent Mondelez (MDLZ.O) , opens new tab was exploring an acquisition of the chocolate maker. Mondelez shares fell 2.3%.

Investors are anticipating the consumer price index (CPI) data set for release on Wednesday, along with the producer price index (PPI) on Thursday, ahead of the Federal Reserve's meeting on Dec. 17-18.

Bets of a 25-basis-point rate cut at the upcoming meeting shot up to more than 85% after data on Friday showed a rise in the unemployment rate to 4.2% in November, indicating an easing labor market.

Several Fed officials, including Chair Jerome Powell, emphasized caution regarding the central bank's approach to easing monetary policy due to the economy's resilience.

Wall Street's main indexes started December on a positive note, with the benchmark S&P 500 (.SPX) , opens new tab and the tech-heavy Nasdaq (.IXIC) , opens new tab both gaining in their first week, while the blue-chip Dow (.DJI) , opens new tab ended the week slightly lower.

On Monday, Workday (WDAY.O) , opens new tab rose 5.1% after S&P Dow Jones Indices said last week the company would be added to the S&P 500 index.

Interpublic Group (IPG.N) , opens new tab climbed 3.6% following a report that marketing giant Omnicom (OMC.N) , opens new tab was in advanced talks to acquire the advertising company. Omnicom shares fell 10.3%.

U.S. stocks soared in November after Donald Trump won the presidential election and his party secured control of both houses of Congress, raising expectations for a more business-friendly policy agenda.

Declining issues outnumbered advancers by a 1.24-to-1 ratio on the NYSE. There were 216 new highs and 35 new lows on the NYSE.

The S&P 500 posted 21 new 52-week highs and 2 new lows while the Nasdaq Composite recorded 122 new highs and 60 new lows.

Volume on U.S. exchanges was 15.11 billion shares, compared with the 14.46 billion average for the full session over the last 20 trading days.

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https://www.reuters.com/markets/us/futures-steady-investor-focus-turns-inflation-data-2024-12-09/