US Stocks Mixed, Treasury Yields Soar To More Than A Decade High: What's Driving Markets Monday?

On Monday, U.S. stocks made a cautious attempt at bouncing back following three consecutive weeks of losses. The upward momentum seems uncertain, and the recent increases in Treasury yields are posing challenges for the market bulls.

The 10-year Treasury yield reached 4.35%, reaching its highest level since October 2007.

NVIDIA Corp. NVDA stood out as a positive exception, moving higher by 5%. This boost was attributed to analysts revising their price targets in a positive direction and investors eagerly awaiting the earnings report set for Wednesday.

With a relatively quiet week in terms of economic data releases, all eyes are on the Federal Reserve’s Jackson Hole Symposium, scheduled for Thursday and Friday. Federal Reserve Chair Jerome Powell is expected to deliver a speech Friday.

Cues From Monday’s Trading:

The S&P 500 edged 0.1% higher, while the Dow Jones Industrial fell 0.4%. The Nasdaq 100 was the clear outperformer, up 1%, while small caps in the Russell 2000 index fell 0.6%.

US Index Performance on Monday

Monday’s Trading In Major US Equity ETFs

• The SPDR S&P 500 ETF Trust SPY was 0.1% higher to $436.92
• The SPDR Dow Jones Industrial Average ETF DIA was 0.44% lower to $343.61 
• The Invesco QQQ Trust QQQ rose 0.95% to $361, according to Benzinga Pro data.

Among S&P 500 sectors:

• The Technology Select Sector SPDR Fund XLK was the best performer for the day, up 1.2%, erasing Friday’s losses.
• The Real Estate Select Sector SPDR Fund XLRE was the laggard, down 1.44%. The Energy Select Sector SPDR Fund XLE followed suit, down by 1.2%.

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Stocks In Focus:

• Palo Alto Networks, Inc. PANW rallied nearly 16% as the stock reacted to its quarterly results released Friday after the close of markets.
• Tesla, Inc. TSLA rose nearly 6%, as it rebounds from a six-session losing streak.
• Nvidia added 5.6% after analysts issued upbeat commentary about its imminent quarterly report.
• Moderna Inc. MRNA rose 9%, after the Biden administration urged all Americans to get a coronavirus booster shot this autumn.
• AMC Entertainment Holdings Inc. AMC tumbled over 20% Monday ahead of the company’s planned stock conversion on Wednesday.
• Nikola Corp. NKLA fell 22% as the company announced significant expenses as a result of a truck recall.
• Nordson Corp. NDSN is scheduled to release its quarterly results after the market close.

Commodities, Bonds, Other Global Equity Markets:

Crude oil fell 0.2%, with a barrel of WTI-grade crude trading at $84.30. The United States Oil Fund ETF USO was 0.1% lower to $72.70.  

Treasury yields were higher, with the 10-year yield down by 9 basis points to 4.34% and the two-year yield up by 4 basis points to 4.99%. The iShares 20+ Year Treasury Bond ETF TLT was 1.4% lower for the day. 

The dollar fell, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF UUP, down 0.1%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust FXE, was 0.3% higher to 1.0901.

European equity indexes closed in the green. The SPDR DJ Euro STOXX 50 Etf  FEZ rose 0.5%. 

Gold, as closely tracked by the SPDR Gold Trust GLD, rose 0.2% to $1,892/oz. Silver gained 2.2% to $23.22. Bitcoin BTC/USD was 0.7% lower to $26,003.

Staff writer Piero Cingari updated this report midday Monday. 

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