Traders adopted a cautious approach on Monday as they awaited two critical inflation reports due later this week, seeking clarity on Federal Reserve interest rate policy.

Additionally, the kickoff of earnings season, led by major banks on Wednesday, added to the market’s subdued tone.

The S&P 500 and Nasdaq 100 edged lower, continuing Friday’s downturn sparked by unexpectedly strong jobs data. The lack of “buy-the-dip” enthusiasm in the tech-heavy indices signaled lingering uncertainty among investors.

In contrast, the Dow Jones Industrial Average eked out a gain, buoyed by a rally in energy stocks. Rising oil prices provided a key lift, as West Texas Intermediate (WTI) crude oil surged over 3% to approach $78 per barrel — a level last seen in mid-August 2024. The spike followed U.S. sanctions on Russian crude exports announced on Friday, which shifted market expectations around supply and demand.

Treasury yields extended their ascent, with the 10-year yield climbing to 4.79% and the 30-year yield rising to 4.97%, reflecting heightened expectations for tighter monetary policy. Bank of America Securities launched a bombshell indicating rising risks towards a rate hike as the next Fed move.

Commodity markets saw mixed action. Gold endured its sharpest daily loss in nearly a month, falling more than 1% as rising yields weighed on the precious metal. Meanwhile, copper staged a modest rebound, gaining 0.8% after a 0.5% decline last Friday.

Cryptocurrencies faced renewed volatility, with Bitcoin (CRYPTO: BTC) plunging 3% to dip below $92,000, briefly touching a two-month low. The ripple effects extended to crypto-linked equities: MicroStrategy Inc. (NASDAQ:MSTR) slid more than 3%, while Coinbase Global Inc. (NASDAQ:COIN) dropped nearly 4%.

Monday’s Performance In Major U.S. Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust (NYSE:SPY) inched 0.1% lower to $579.98.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.7% to $422.03.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) fell 0.6% to $504.44.
• The iShares Russell 2000 ETF (NYSE:IWM) dipped 0.3% to $216.19.
• The Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, up 2.3%; the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 1.1%.

Monday’s Stock Movers

• Major oil & gas giants rallying on Monday include Valero Energy Corp. (NYSE:VLO), up 5%, Baker Hughes Co. (NASDAQ:BKR) up 3.9%, and Marathon Petroleum Corp. (NYSE:MPC) up 3.5%.
• Health insurance companies surged after a government proposal suggested increased payments for Medicare Advantage plans in 2026, lifting sentiment across the sector.
• Shares of Humana Inc. (NYSE:HUM) rose 7.8%, CVS Health Corp. (NYSE:CVS) followed closely with a 6.9% jump, while UnitedHealth Group Inc. (NYSE:UNH) saw a 4.8% increase.+
• NVIDIA Corp. (NASDAQ:NVDA) dropped 2.7% to $132.19 as the AI chipmaker urged President-elect Donald Trump to oppose Biden administration regulations on AI technology. Meanwhile, HSBC cut its price target from $195 to $185 but reaffirmed its Buy rating.
• Moderna Inc. (NASDAQ:MRNA) plummeted 20% after projecting 2025 revenue of $1.5 billion to $2.5 billion, missing analysts’ estimates of $2.92 billion. The company also announced it would fast-track its cost-cutting measures.
• Edison International (NYSE:EIX) fell 12% as authorities investigated whether equipment from its subsidiary, Southern California Edison, played a role in sparking the Hurst fire in Los Angeles.

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Photo: Ryan DeBerardinis via Shutterstock