U.S. stock markets dropped on Monday due to rising Treasury yields and a stronger dollar, which made investors more cautious. Many are reconsidering the economic outlook and the Federal Reserve’s possible interest rate changes.
The yield on the 10-year Treasury note increased by 9 basis points to 4.18%, the highest since July. Meanwhile, 30-year bond yields reached 4.5%, leading the iShares 20+ Year Treasury Bond ETF (TLT) to fall by 1.4%.
The dollar, tracked by the Invesco DB USD Index Bullish Fund ETF (UUP), rose by 0.5%.
Dallas Fed President Lorie Logan suggested that rate cuts could happen if the economy performs as expected. Market predictions for a 25-basis-point cut in November decreased slightly from 90% to 85%.
The CBOE Volatility Index (VIX), known as Wall Street’s “fear gauge,” jumped 5%, its biggest rise in two weeks.
The S&P 500 was down 0.5% at midday, with all sectors declining. The Dow Jones lost 0.9%, while the Russell 2000 (small-cap stocks) dropped 1.7%. Tech stocks had minor losses, but NVIDIA Corp. gained over 2% to hit an all-time high of $141.80.
Commodities had mixed results with gold pausing after four days of gains, while oil prices rose 1.6% due to supply concerns. Bitcoin fell sharply by 2.8%.
Monday’s Performance In Major U.S. Indices
| Major Indices | Price | 1-day % Change |
|---|---|---|
| Nasdaq 100 | 20,290.48 | -0.2% |
| S&P 500 | 5,840.64 | -0.4% |
| Dow Jones | 42,904.60 | -0.9% |
| Russell 2000 | 2,237.90 | -1.6% |
According to Benzinga Pro data:
- SPDR S&P 500 ETF Trust (SPY) fell 0.3% to $582.24.
- SPDR Dow Jones Industrial Average (DIA) dropped 0.7% to $429.46.
- Invesco QQQ Trust Series (QQQ) eased 0.2% to $493.66.
- iShares Russell 2000 ETF (IWM) was down to $222.12.
- Communication Services Select Sector SPDR Fund (XLC) rose 0.9%, while Energy Select Sector SPDR Fund (XLE) fell 0.6%.
Monday’s Stock Movers
- Boeing Co. (BA) surged over 3% after a tentative agreement to end a five-week strike and an order for freighters from Emirates SkyCargo.
- Kenvue Inc. (KVUE) shares rose 6.5% after news of activist investor Starboard Value acquiring a substantial stake.
- Cigna Group (CI) continued to decline, falling nearly 5% as investors reacted negatively to potential merger reports with Humana Inc. (HUM), with Oppenheimer analysts advising Cigna to stay independent.
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