within the majors drops in the S&P indicator The sectors that had the greatest decrease were technology and discretionary consumption.
“Right now we’re in a hold pattern, waiting for all those events to play out,” said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut. “Obviously we’re seeing some more weakness in tech names. People are probably just trading less risk before profit,” he said.
This week would also be the busiest in the second-quarter earnings reporting period, with results from some 170 S&P 500 companies. Microsoft Corp and Alphabet must report on Tuesday, while Apple Inc and Amazon.com Inc They will do it on Thursday.
Against this backdrop, US Treasury yields rose slightly on Monday as investors awaited the Federal Reserve’s likely 75 basis point interest rate hike this week, amid growing concerns about a economic slowdown and the possibility of a recession.
The Gap Between Two-Year and Ten-Year Treasury Note Returnsseen as an indication of an impending recession when short-term yields are higher than long-term, has been inverted for more than two weeks and was trading at -18.9 basis points.
“This is the first significant yield curve inversion that we’ve had since 2006 over a period of time,” said David Petrosinelli, principal trader at InspereX, adding that it feeds into a generally accepted narrative that a slowdown will occur at the very least. .
Despite a drop in the indices on Friday – the first in four sessions – Wall Street had a strong week with the Dow Jones up 2% for the week, the S&P 500 up 2.5% and the Nasdaq 3.3%.
Source: Ambito
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