Stocks ended mixed on Monday, as rising U.S. Treasury yields and expectations for higher inflation weighed on sentiment. The Dow Jones was the only gainer, with the S&P 500 falling lower and the Nasdaq posting its biggest drop in a month.
The 10-year U.S. Treasury yield increase to around 1.35% on Monday after jumping 14 basis points last week to its highest level since February 2020. The 30-year yield also rose to a one-year high of 2.2%.
Here's how the market closed to start the week:
S&P 500 Index (SPY ): -0.77% or -30.22 points to 3,876.49
Dow Jones Industrial Average (DIA ): +0.09% or +27.70 points to 31,522.02
Nasdaq Composite Index (QQQ ): -2.46% or -341.42 points to 13,533.05
For Stocks, Goodyear (GT ) rallied on Monday after the tire company announced its will acquire its smaller rival, Cooper Tire (CTB ). Mega-cap tech stocks declined on Monday, with Tesla (TSLA ) sliding over 8% and FAANG names like Apple (AAPL ), Amazon (AMZN ) and Microsoft (MSFT ) falling over 2%. Airline stocks American (AAL ), Delta (DAL ) and United (UAL ) jumped higher after Deutsche Bank upgraded the airline industry to a buy rating. The firm stated the airlines are "back on track" for their economic recovery from the impact of the pandemic.
For Sector Performance, sectors on the S&P 500 ended mixed on Monday, with Energy leading gainers by an over 3% increase. The session's biggest decliners were Utilities (XLU ), Consumer Discretionary (XLY ) and Information Technology (XLK ), each falling around 2%.
For Commodities and Currency, the U.S. Dollar (UUP ) continued its decline on Monday as investors were concerned about rising bond yields. The dollar index, which tracks the greenback against other global currencies, slid 0.3% to 90.046. Gold (GLD ) prices rose to a near one-week high on Monday as market participants were concerned about inflation, making the safe haven metal more attractive. Spot gold climbed 1.5% higher at $1,808.16 per ounce, while U.S. gold futures settled up 1.7% at $1,808.40 per ounce. Crude oil futures surged higher on Monday, driven by the slow return of U.S. crude output following last week's extreme winter weather in Texas that harmed production. U.S. producers had halted output for anywhere between 2 million to 4 million barrels per day due to the state's freeze, with the extended cold conditions keeping output offline longer than expected. International benchmark Brent Crude (BNO ) rose 3.2% to $64.95 per barrel, while domestic index West Texas Intermediate (USO ) settled 3.8% higher at $61.49 each.
For Tuesday, market participants will focus on remarks from Federal Reserve Chairman Jerome Powell, who is set to deliver his semi-annual testimony on the economy before the Senate Banking Committee. Powell's comments on interest rates and inflation could determine the direction of the stock market for the rest of the week.