DJIA: 36,068.87, down 162.79
S&P 500: 4,670.29, down 6.74
Nasdaq: 14,942.83, up 6.93
Stocks mixed; Treasuries stabilize
U.S. stocks finished mixed on Monday as investors continued to monitor risks related to rising yields, persistent inflation, and prospects of faster-than-anticipated monetary policy tightening. The Dow lost 162 points, while the S&P 500 edged 0.1% lower for its fifth straight daily decline, matching a losing streak not seen since September. Meanwhile, some investors emerged to buy the dip in big tech shares. The Nasdaq Composite rose less than 0.1%, erasing an earlier drop of over 2% following its worst week since February 2021 (-4.5%). The mega-cap Nasdaq 100 also climbed back from an early session loss of roughly 2.7% to end modestly higher (+0.1%).
Treasuries found support, with the yield on the 10-year note holding steady at 1.76%, though still perched at its highest level since January 2020. The benchmark yield surged 25 basis points (0.25%) in the first week of 2022 as the minutes from the Federal Reserve’s (Fed) December meeting revealed policymakers contemplated a rate hike “sooner or at a faster pace” than originally anticipated. Consequently, all eyes will be on Fed Chair Jerome Powell tomorrow, as he speaks during his nomination hearing in Washington. Additionally, an update on the Consumer Price Index (CPI) will be closely watched on Wednesday.
Eight of 11 S&P 500 sectors closed in negative territory, with the more cyclical Industrials and Materials groups leading decliners. Health Care shares outperformed with Moderna Inc. jumping 8.5% on upbeat sales estimates. In M&A news, Take-Two Interactive Software Inc. slumped 13.6% after agreeing to purchases online game maker Zynga Inc. for roughly $12.7 billion.
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