The Nasdaq Composite rose on Monday as Treasury yields fell from their highs and traders awaited the announcement of corporate earnings from tech industry titans.The Dow Jones Industrial Average sank 190.87 points, or 0.58%, to 32,936.41, while the S&P 500 dropped 0.17% to 4,217.04. The Nasdaq Composite gained 0.27% to close the session at 13,018.33.The …
The Nasdaq Composite rose on Monday as Treasury yields fell from their highs and traders awaited the announcement of corporate earnings from tech industry titans.
The Dow Jones Industrial Average sank 190.87 points, or 0.58%, to 32,936.41, while the S&P 500 dropped 0.17% to 4,217.04. The Nasdaq Composite gained 0.27% to close the session at 13,018.33.
The benchmark 10-year Treasury note yield momentarily rose above the critical 5% level before falling again. It was recently trading at around 4.85%.
Interest rates have risen in recent weeks, with the 10-year Treasury yield breaking above 5% on Thursday, the first time the benchmark has done so since July 2007. On Thursday, Federal Reserve Chair Jerome Powell signaled that monetary policy could be tightened further. This appears to have fueled market fear and fueled the rise in Treasury yields. Some analysts believe the benchmark yield has further room to run.
The quick rise in yields “should accelerate an already weakening economic picture that is masked by higher rates,” Canaccord Genuity chief market analyst Tony Dwyer wrote in a report on Monday.
Wall Street has had a rough week. The S&P 500 finished the week down 2.4%, its first loss in three weeks. The Dow fell 1.6%, while the Nasdaq fell 3.2% for the second week in a row.
Chevron shares fell 3.7% after the company announced an all-stock acquisition of competitor Hess. Following a JPMorgan upgrade, pharmacy behemoth Walgreens rose 3%. Okta, an online security company, fell 8% for the second day in a row following a data breach.
This week marks the start of earnings season, with a number of huge IT heavyweights ready to report. Investors predict that Alphabet, Amazon, Meta, and Microsoft will disclose important information to the stock market.
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