Technology stocks led U.S. stocks lower on Monday, while the dollar and bond yields climbed as hopes of a rate cut faded ahead of this week’s key consumer inflation report.
The S&P 500 (^GSPC) fell 0.8% and the Nasdaq (^IXIC) fell about 1.6%. But the Dow Jones Industrial Average (^DJI), which contains fewer technology stocks, fluctuated along a flat line.
Stocks are heading for another tough day of trading after Friday’s plunge that wiped out all gains for the year on Wall Street’s major indexes. A hot December jobs report unnerved markets, raising concerns that signs of a strengthening economy would encourage the Federal Reserve to keep interest rates higher for longer.
As of 9:52:59 AM ET. The market is open.
^DJI Innovations ^IXIC ^GSPC
The 10-year Treasury yield (^TNX) has risen recently, hitting a 14-month high near 4.8% as U.S. Treasuries sell off. Meanwhile, the dollar (DX-Y.NYB) surged to two-year highs against major currencies, with the pound (GBPUSD=X) particularly under pressure.
As of Monday, traders were betting that no rate cut would take until at least September and that the Fed would reduce borrowing costs by 30 basis points throughout 2025, according to the CME FedWatch tool.
That heightened attention on Wednesday’s consumer price index for December, as a major concern is that inflation will not fall to the central bank’s 2% target.
Adding to the woes, oil prices rose to their highest levels in five months but fell back after the United States imposed tougher sanctions on Russia’s crude industry, threatening supplies from China and India. Brent crude (BZ=F) briefly rose more than 2% to trade above $81 a barrel, while West Texas Intermediate (CL=F) changed hands near $78 a barrel.
Shares of Nvidia (NVDA), Apple (AAPL) and Tesla (TSLA) fell as all “Big Seven” tech giants lost ground amid the market turmoil. Europe’s largest pension fund revealed it sold its entire stake in Tesla Inc. over Chief Executive Elon Musk’s pay package.
Among other corporate stocks, biotech giant Moderna (MRNA) dropped more than 22% after it cut its 2025 sales forecast by $1 billion due to weak vaccine demand.
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Stocks fall as hopes of rate cut fade
Stocks opened lower on Monday, led by technology stocks, as optimism about interest rate cuts this year continued to fade and bond yields rose.
The S&P 500 (^GSPC) fell 0.8% and the Nasdaq (^IXIC) fell 1.3%. The Dow Jones Industrial Average (^DJI) fell about 0.1%.
The stock market selloff continued after Friday’s plunge, with the major averages erasing all of their year-to-date gains.
A hot December jobs report spooked markets as investors faced the possibility of the Federal Reserve cutting interest rates just twice this year.
Among laggards on Monday, Nvidia (NVDA) and Tesla (TSLA) fell more than 3% and 2%, respectively, as the “Big Seven” group lost ground in the market sell-off.
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