Traders work on the floor of the New York Stock Exchange during morning trading in New York City.
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Stocks struggled on Monday as rising oil prices and rising Treasury yields weighed on market sentiment.
the Dow Jones Industrial Average The index decreased by 398.51 points, or 0.94%, to close at 41,954.24 points. the Standard & Poor’s 500 It fell 0.96% to 5,695.94 points Nasdaq Composite The stock lost 1.18% to close at 17,923.90 points.
Standard 10-year Treasury bond yield It rose more than 4 basis points to 4.02%. This is the first time since August that the yield has exceeded 4%. Oil prices also rose as tensions continued in the Middle East. US crude rose more than 3% to settle above $77 a barrel.
Monday’s moves come after a bumpy week for stocks that saw the major averages post modest gains. The S&P 500 added 0.2% to the week’s gains, while the Nasdaq Composite rose 0.1% and the Dow Jones rose 0.1%.
“You’re coming off a week that was saved by the jobs report on Friday. The two things that I think investors are watching most cautiously here is that Treasury yields are rising again and … you have energy prices creeping up,” said Art Hogan, chief market strategist at B.C. RileyWealth.
“Both of those things are probably making investors look at this and say, ‘I wonder if it’s going to get worse before it gets better, and we don’t think it will,'” he added. “It’s certainly a reason to be cautious at the beginning of earnings reporting season.”
Energy stocks, which rose about 0.4%, were the only sector in the S&P 500 to close in positive territory. The utilities and consumer discretionary sectors were among the laggards in the index, both down about 2%.
Key releases next week include Wednesday’s Federal Reserve meeting minutes and Thursday’s CPI report. Earnings season is also starting to heat up, with results coming in Delta Airlines and JPMorgan Chase It is scheduled to be released on Thursday and Friday, respectively.
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