U.S. stocks closed mostly lower on Monday as the 10-year Treasury yield briefly surpassed 5%, a level not seen in the past 16 years. Throughout the day, the S&P 500 index fluctuated between modest gains and losses, ultimately ending about 7 points lower or 0.2% near 4,216. This marked the fifth consecutive session of losses for the equity-market gauge, representing its longest stretch of declines since Dec. 7, 2022 as reported by Dow Jones Market Data.
Dow Jones Industrial Average and Nasdaq Composite Index React Differently
The Dow Jones Industrial Average shed about 191 points or 0.6%, closing near 32,936, while the Nasdaq Composite Index rose 0.3%. Earlier in the day, the Nasdaq Composite Index fell below 12,922.216, a critical level for solidifying a finish in correction territory, which occurs when an equity index closes at least 10% below its prior peak. However, according to Dow Jones Market Data, it managed to inch above that level by the end of the session.
Treasury Yields Retreat from Brief Spike
After briefly surpassing 5% earlier in the session, the 10-year Treasury yield fell 8.8 basis points to 4.836%. This significant retreat provided some relief to investors who had been closely monitoring the rising yields.
Tech Giants' Earnings in Focus
Investors are closely watching the upcoming third-quarter earnings reports of tech giants such as Microsoft Inc., Google, Meta, and Amazon. These companies, denoted as Microsoft Inc. (MSFT), Google (GOOG), Meta (META), and Amazon (AMZN) respectively, hold significant influence in the market and their performance could have a substantial impact on investor sentiment.
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