Stocks Rebound, Value Makes Comeback, Treasury Yields Resume Climb: What's Driving Markets Monday?

At the start of the week, the U.S. stock market is attempting to break the negative streak of four consecutive sessions in the red, with all major indices for large-cap stocks showing gains at midday trading in New York.

The outperformance of value stocks compared to growth stocks continues, as the ratio between Vanguard Value ETF VTV and Vanguard Growth ETF VUG reaches its highest point since mid-June.

A climb in Treasury yields is resuming, particularly in longer maturities, with the 10-year and 30-year yields rising by 6 basis points to 4.1% and 4.27%, respectively.

Recent Federal Reserve speakers have sent conflicting messages, while the anticipated auction sizes for this month are weighing on Treasuries.

Cues From Monday’s Trading:

The S&P 500 Index gained 0.6%, while blue chips in the Dow Jones Industrial Average outperformed, gaining 350 points or 1% on the day.

The tech-heavy Nasdaq 100 index edged 0.3% higher, while small caps in the Russell 2000 weakened, easing 0.2%.

US Index Performance On Monday

Monday’s Trading In Major US Equity ETFs: In midday trading on Monday, the SPDR S&P 500 ETF Trust SPY was 0.6% higher to $449.61, the SPDR Dow Jones Industrial Average ETF DIA rose 0.96% to $354.03 and the Invesco QQQ Trust QQQ was 0.4% higher to $373.61, according to Benzinga Pro data.

All U.S. equity sectors traded in the green, excluding the Technology Select Sector SPDR Fund XLK, which inched 0.1% lower.

The Financial Select Sector SPDR Fund XLF was the best performer of the day, up 1.4%, followed by the Communication Services Select Sector SPDR Fund XLC, up 1.3%.

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Stocks In Focus:

Berkshire Hathaway, Inc.'s BRK BRK Class B shares moved up over 4%, reaching new all-time highs, in reaction to the investment holding company's quarterly results released Saturday.

Moderna Inc. MRNA tumbled 8%, being both the S&P 500’s and Nasdaq 100’s worst performer of the day, on track for its sixth straight day of losses.

Booking Holdings Inc. BKNG rose 4.7%, following a slew of analyst price target increases.

Companies reporting after the close include ADTRAN Holdings, Inc. ADTN, Lucid Group, Inc. LCID, Paramount Global PARA and Palantir Technologies, Inc. PLTR.

Commodities, Bonds, Other Global Equity Markets:

Crude oil weakened 0.4%, with a barrel of WTI-grade crude trading at $82. The United States Oil Fund ETF USO was 0.2% lower to $73.  

Treasury yields rose further, with the 10-year yield up by 6 basis points to 4.1% and the two-year yield up by 6 basis points to 4.28%. The iShares 20+ Year Treasury Bond ETF TLT was 0.8% lower for the day. 

The dollar slightly gained, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF UUP, up 0.1%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust FXE, was 0.1% lower to 1.10.

European equity indexes closed in the green. The SPDR DJ Euro STOXX 50 Etf  FEZ rose 1%. 

Gold fell 0.4% to $1,934/oz. The SPDR Gold Trust GLD was 0.3% lower to $179. Silver fell 2.1% to $23.12, with the iShares Silver Trust SLV down 2% to $21.22. Bitcoin BTC/USD was 0.3% lower to $28,931.

Staff writer Piero Cingari updated this report midday Monday. 

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