DJIA: 35,091.13, up 1.39
S&P 500: 4,483.87, down 16.66
Nasdaq: 14,015.67, down 82.34
Stocks end mostly lower in choppy trading
U.S. stocks finished mostly lower in choppy trading Monday. The major averages fluctuated between gains and losses as investors contended with the prospect of reduced monetary stimulus from global central banks. The S&P fell 0.4%, while the Nasdaq Composite dropped 0.6% on the heels of their best week of 2022 (+1.6% and +2.4%, respectively). The Dow ended just above the flat line following last week’s 1.1% advance.
Seven of 11 S&P 500 sectors closed in negative territory, with Communication Services leading the decline amid weakness in mega-cap internet names and social media companies. Energy bucked the downtrend despite West Texas Intermediate crude slipping 1% to $91.35/barrel, still near a seven-year peak. In earnings, Tyson Foods Inc. jumped 12.1% following upbeat results, helped by price increases for its meat products. In merger and acquisition news, Spirit Airlines Inc. rallied 17.2% after announcing plans to merge with Frontier Airlines in a deal worth $6.6 billion. Elsewhere, Peloton Interactive Inc. surged 20.9% on reports the fitness equipment maker was mulling takeover options.
Meanwhile, Treasuries stabilized, though market participants braced for imminent Federal Reserve rate hikes. On Friday, a stronger-than-expected monthly jobs report reignited concerns surrounding a faster pace of monetary policy tightening, while an update this Thursday is anticipated to reflect still-elevated consumer price inflation. The yield on the 10-year note increased one basis point (0.01%) to 1.92%, its highest level since December 2019. Overseas, Germany’s 10-year bund yield rose for a 10th straight session—its longest such streak since 2000—as investors assessed perceived hawkish remarks from a European Central Bank (ECB) official.
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