U.S. major indices fell on Monday as rising Treasury yields and a strengthening dollar dampened risk sentiment. Investors are reassessing the economic outlook and weighing potential risks tied to the Federal Reserve's next interest rate moves.
Yields on the 10-year Treasury note surged 9 basis points to 4.18%, reaching their highest level since late July. Meanwhile, 30-year Treasury bond yields climbed to 4.5%. The spike in yields pushed the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) down by 1.4%, reflecting renewed pressure on long-duration bonds.
A gauge of the greenback, as tracked by Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), rose 0.5%.
On Monday, Dallas Fed President Lorie Logan hinted that gradual rate cuts are on the cards if the economy meets forecasts. Market-implied expectations for a 25-basis-point rate cut in November dipped slightly from 90% to 85%, according to CME FedWatch.
The CBOE Volatility Index (VIX), commonly known as Wall Street's "fear gauge," jumped 5% on Monday, marking its largest surge in two weeks.
The S&P 500 traded 0.5% lower at midday trading in New York, with all its 11 sectors in the red. The Dow Jones Industrial Average shed 0.9%, while the Russell 2000, which tracks small-cap stocks, tumbled 1.7%. Technology stocks experienced minor losses.
Despite the negative session, NVIDIA Corp. (NASDAQ:NVDA) gained over 2%, hitting $141.80 per share and notching fresh all-time highs.
In commodities, gold took a breather after four consecutive sessions of gains, while oil prices rebounded 1.6%, driven by renewed supply concerns. Bitcoin (CRYPTO: BTC) fell sharply, losing 2.8%.
Monday's Performance In Major U.S. Indices, ETFs
| Major Indices | Price | 1-day %chg |
| 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:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.3% to $582.24.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) fell 0.7% to $429.46.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) eased 0.2% to $493.66.
- The iShares Russell 2000 ETF (NYSE:IWM) dipped to $222.12.
- The Communication Services Select Sector SPDR Fund (NYSE:XLC) outperformed, up 0.9%. The Energy Select Sector SPDR Fund (NYSE:XLE) lagged, down 0.6%.
Monday's Stock Movers
- Boeing Co. (NYSE:BA) surged over 3% after the company reached a preliminary agreement with its employees to end a five-week strike. Adding to the momentum, Emirates SkyCargo placed an order for five additional Boeing 777 freighters.
- Kenvue Inc. (NYSE:KVUE) shares jumped 6.5% following reports that activist investor Starboard Value has acquired a substantial stake in the company.
- Cigna Group (NYSE:CI) extended its losses on Monday, falling nearly 5% after a 5% decline on Friday, as investors continued to react negatively to reports of a potential merger with Humana Inc (NYSE:HUM). Oppenheimer analysts weighed in on the situation, recommending that Cigna remain independent amid skepticism about the merger's strategic value and regulatory feasibility.
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