Stocks face pressure amid a rise in Treasury yields and higher oil prices, as investors remain focused on Federal Reserve decisions and the looming corporate earnings season.
Wall Street opens in red pressured by better bond yields and the oil rebound
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Stocks fall this Monday while Wall Street struggles to maintain the momentum of Friday’s rally. The Dow Jones Industrial Average falls 190 points, or 0.5%. The S&P 500 fell 0.3%, and the Nasdaq Composite lost 0.3%.
Stocks happen to be pressured by a rise in US Treasury yields. The yield on the 10-year Treasury bond, which is the benchmark, rose almost 3 basis points to 4.008%. It is the first time since August that the yield has exceeded 4%.
Higher oil prices are also taking a toll on equities as tensions in the Middle East remain high. US crude oil rises more than 2% to more than $76 per barrel.
These moves come after a choppy week for stocks, which saw major indexes post modest gains. The S&P 500 rose 0.2% for the week, while the Nasdaq Composite gained 0.1% and the Dow added 0.1%.
Wall Street and the data analyzed by the market
It was the fourth consecutive week of gains for all three indexes, boosted by a stronger-than-expected jobs report on Friday, which further supported the idea that the Federal Reserve could achieve a “soft landing” for the US economy. The Dow closed at a record high following the report.
wall street markets NYSE.jpg
NYSE
“Two old adages on Wall Street: don’t fight the trend and don’t fight the Federal Reserve. … These remain two key pillars for today’s stock market,” Keith Lerner, co-chief investment officer at Truist Wealth, said in a note Friday.
However, Lerner warned that the impending US presidential election and the possibility of an “October surprise” could keep market volatility elevated in the coming weeks.
On the economic front, next week’s key releases include the Federal Reserve meeting minutes on Wednesday and the consumer price index report on Thursday. Earnings season is also starting to heat up, with results from Delta Air Lines and JPMorgan Chase scheduled for Thursday and Friday, respectively.
Source: Ambito
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