Dow Jones gains slightly at the close, S&P 500, Nasdaq slide as yields surge
The $NASDAQ 100 Index(.NDX.US$-1.3% falls the most among the three broad stock market indexes at Monday's close, struggling as a rebound in rates hit growth names and megacaps also face selling pressure.
Names like $DoorDash(DASH.US$and $Peloton Interactive(PTON.US$and other shares that gained during the pandemic are sliding.
The $S&P 500 Index(.SPX.US$-0.3% finishes the session lower, while the $Dow Jones Industrial Average(.DJI.US$+0.1% performs the best thanks to price gains from $Goldman Sachs(GS.US$and $JPMorgan(JPM.US$.
Six of the 11 S&P sectors are higher, led by Energy and Financials. Communication Services fall the most.
The megacaps are mostly lower, with $Amazon(AMZN.US$the worst performer.
"The SPX continues to consolidate within a bullish pennant formation," Craig Johnson, technical market strategist at Piper Sandler says. "A close above 4,705 would validate a topside breakout. While last week’s advance lacked participation, the bullish breakouts and/or improving technical setups among its mega-caps is encouraging."
The $U.S. 10-Year Treasury Notes Yield(US10Y.BD$yield is up 8 basis points to 1.62%, while the $U.S. 2-Year Treasury Notes Yield(US2Y.BD$is also up 8 points to 0.59%.
Rates rose after news hit that the White House is renominating Chairman Jerome Powell, while naming Lael Brainard as vice chair.
"This decision also removes uncertainty with Powell’s current term ending in February," ING says. "Had there been any delay in appointing a new Chair due to a lack of political support this could have caused significant financial market nervousness, particularly if we are right and the economy is soaring, inflation is above 6% and the Fed is still stimulating the economy with QE."
October existing home sales rose unexpectedly to 6.34M.
"Another upside surprise relative to both the mortgage applications numbers and the pending sales index, leaving sales at a nine-month high, after reversing about three-fifths of the drop in the first half of the year," Pantheon Macro's Ian Shepherdson writes. "Most of the increase in recent months, and all the October gain, is in the core single-family home component; condo/co-op sales dipped last month."
On the M&A front Monster Beverage is reportedly looking for a deal with Constellation.
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Dogoro777 : All Biden Fed picks likely to be those who favor, easy money, MMT, low rates, more QE, and no action on inflation- all to support more huge spending by Democrats.
baby boomers Dogoro777 : Good news for the stock market, terrible news for the country.
hairless Dogoro777 : And of course crypto, I aspect gold & commodities will be nice after all this inflation and money spending, but for now tech ‘stonks’ only go up
Leoi Dogoro777 : Still waiting for that $1 trillion coin to pay all the debt. Problem solved.
rppIg2As8t : What the hell? The S&P has an almost 50 point move to the downside 30-45 minutes before the close? I don't see any news - so I can only assume the day trade is now completely off the rails too.
Beginning to believe one hell of a tech crash is coming...
v5PvYvukTK : Brandon keeps under minding consumer and business confidence. It was bound to make its way to equity markets eventually...
NCDEH6DMn7 : Here we go again with this treasury bond shit again. I absolutely HATE how those bonds hurt stocks. It's ridiculous! I wish the treasuries would go to 3% so we can get all the losses over with. It's horribly uncomfortable watching these rates go up a little bit at a time and causing drastic losses in the stock markets.
A1EIIWLU1C : PTON is below $44. LOL So entertaining to watch this drama.
oXrssHBsXw A1EIIWLU1C : I never got this stock.
However, other tech, especially social media upstarts are going on sale. The internet is cocaine and even the hated FB keeps ploughing on and on.
Baby u oXrssHBsXw : Yes, there are good values in the tech sector now.
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