On Monday, the S&P 500 saw a small gain as Treasury yields increased and market participants anticipated the announcement of corporate profits from major players in the technology sector.
The Dow Jones Industrial Average dropped 47 points, or 0.1%. While the S&P rose 0.8%, the Nasdaq Composite increased by 0.2%.
The benchmark 10-year Treasury note yield briefly reclaimed the crucial 5% threshold. The price was recently hovering just beneath that level.
The 10-year broke above 5% on Thursday, the first time the benchmark has done so since July 2007. Interest rates have risen sharply in recent weeks. Jerome Powell, the chair of the Federal Reserve, made remarks on Thursday that seemed to fuel investor anxiety and support the increase in Treasury yields by implying that monetary policy would tighten further. The benchmark yield, according to some analysts, may still have some opportunity to grow.
According to Canaccord Genuity Group chief market analyst Tony Dwyer in a report published on Monday, the sharp increase in yields “could worsen an already declining economic picture that is concealed by higher rates.”
Source (CNBC)