DJIA: 32,945.24, up 1.05
S&P 500: 4,173.11, down 31.20
Nasdaq: 12,581.22, down 262.59
Stocks mostly lower; tech shares slide
U.S. stocks finished mostly lower on Monday as investors assessed a number of market-related headwinds. The Dow added 1 point, while the S&P 500 fell 0.7%. The Nasdaq Composite tumbled 2%, sliding back into bear market territory (defined as a 20% drawdown from a recent peak) amid weakness in growth-related shares. Apple Inc retreated 2.7% as a spike in COVID-19 cases in China incited another wave of lockdowns, including the closure of one of the iPhone maker’s suppliers in Shenzhen. U.S.-listed Chinese stocks were also under pressure following reports that Russia asked China for military help in Ukraine, sparking concerns that sanctions against Chinese companies could ensue. Meanwhile, a fourth round of discussions between top Russian and Ukrainian officials resulted in no real progress toward a ceasefire.
Seven of 11 S&P 500 sectors closed in negative territory, with Energy shares leading the decline amid the pullback in oil prices. West Texas Intermediate crude fell 7.3% to $102.02/barrel, extending last week’s reprieve. Financials bucked the downtrend, tracking a back-up in Treasury yields, while COVID-19 vaccine makers also outperformed.
Treasuries slumped, with the yield on the 10-year note spiking 14 basis points (0.14%) to 2.14%, the highest level since June 2019. A rout in global bonds persisted as rising coronavirus infections in China stirred worries that further supply chain disruptions could exacerbate ongoing price pressures. All eyes will be on the Federal Reserve Wednesday, as policymakers are expected to increase interest rates for the first time since 2018 in order to combat the highest inflation in four decades.
Read more about it here.