DJIA: 34,308.08, down 413.04
S&P 500: 4,412.53, down 75.75
Nasdaq: 13,411.96, down 299.04
Stocks slide; yields march higher
U.S. stocks finished near session lows on Monday as investors monitored the swift rise in Treasury yields. The ongoing Russian-Ukraine war and COVID-19 lockdowns in China also remained market headwinds. The Dow lost 413 points, while the S&P 500 fell 1.7%. The Nasdaq Composite dropped 2.2% as the recent sell-off in growth-oriented shares persisted. The tech-heavy benchmark is more than 16.4% below its November peak.
The rout in Treasuries deepened, with the yield on the 10-year note climbing eight basis points (0.08%) to 2.78%, its highest level since January 2019. Last week, 10-year Treasury yields jumped the most since the 2016 U.S. presidential election (+0.33%) as investors weighed an increasingly hawkish Federal Reserve focused on reining in the highest inflation in 40 years. Tomorrow, all eyes will be on the latest Consumer Price Index (CPI) report, with an 8.4% year-over-year increase widely anticipated to represent the peak figure on an annual basis. Investors will also turn their attention to the start of earnings season as some of Wall Street’s biggest banks begin to report on Wednesday. Overall, S&P 500 profits are forecasted to have grown 5.5% year-over-year during the first quarter, according to Bloomberg.
All 11 S&P 500 sectors closed in negative territory, with Energy leading the downturn amid a drop in oil prices. West Texas Intermediate crude declined 3.4% to $94.96/barrel as rising COVID-19 cases in China dampened the outlook for global demand. Technology shares also lagged, with semiconductors among the worst-performing groups. NVIDIA Corp. slid 5.2% following an analyst downgrade. Elsewhere, shares of AT&T jumped 7.6% after completing the spin-off of its WarnerMedia unit to Discovery Communications.
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