Stocks declined on Monday as Treasury yields surged higher, sparking worries that the Federal Reserve may not lower rates as significantly as expected.
The Dow Jones Industrial Average fell by 420 points, equating to a 1.1% decrease. The S&P 500 slipped by 0.8%, while the Nasdaq Composite experienced a drop of nearly 1%. Last week, the S&P 500 hit a record high due to significant gains in Big Tech stocks.
The yield on the 10-year Treasury note increased by over 12 basis points to 4.158% as investors evaluated robust economic data that indicated rates might remain higher for a longer period than previously anticipated. The benchmark yield was approximately 3.81% the previous week.
During a “60 Minutes” interview that aired on Sunday, Federal Reserve Chairman Powell restated his remarks following the January policy meeting, hinting that a rate cut in March was improbable.
Meanwhile, earnings season continued, with McDonald’s shares declining by 4% after posting mixed results for the quarter. These outcomes raised concerns about the earnings outlook for companies beyond the tech giants and their ability to deliver strong performances for the remainder of the earnings season.
Source (CNBC)
