Stock Market Today: Stocks mixed, bond yields gain as Trump rally stalls
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U.S. stocks were mixed in early Monday trading, while Treasury yields and the dollar tested multi-month highs, as investors entered the week on a cautious note with inflation risk and political uncertainty weighing on global markets.
Updated at 9:36 AM EST
Muted open
The S&P 500 was marked 3 points, or 0.06% lower in the opening minutes of trading, with the Nasdaq up 19 points, or 0.09%.
The Dow was marked 85 points lower while the mid-cap Russell 2000 was up 5 points, or 0.22%.
"The market’s post-election rally tapped the brakes last week. Traders appear to be gauging the potential impact of a new Trump administration’s policies on the economy, and the possibility that the Fed may slow down its rate-cutting campaign," said Chris Larkin, managing director for trading and investing at E*Trade from Morgan Stanley.
"With a relatively light economic calendar this week, the focus will shift to earnings—especially Nvidia’s, which have the potential to dictate the market’s short-term momentum," he added.
Related: Top Wall Street analyst unveils unexpected S&P 500 price target for 2025
Updated at 8:34 AM EST
Yield creep
Another move higher in Treasury yields in weighing on stocks into the open, with benchmark 10-year notes rising 3 basis points from overnight levels to 4.487% in early trading and 30-year bonds topping 4.68% and trading north of the current Fed Funds rate for the first time since late 2022
Stock Market Today
Stocks finished sharply lower on Friday, with the S&P 500 recording its biggest single-day decline in more than two weeks, following a firmer-than-expected reading for October retail sales that added to concerns of a resurgence in inflation pressures.
Last week's data, which included hotter-than-expected reading for consumer and factory-gate inflation as well as hawkish comments on interest rates from Federal Reserve Chairman Jerome Powell, added to the market's broader angst that President-elect Donald Trump's economic, immigration and trade agenda would further stoke domestic price pressures.
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That's led investors to pare bets on a December interest-rate cut, which are now pegged at around 62%, according to CME Group's FedWatch, and has lifted benchmark Treasury bond yields to the highest since early July.