Dow Rises, Techs Weigh on other Indexes - InvestingChannel

Dow Rises, Techs Weigh on other Indexes



U.S. stocks were split on Monday as Treasury yields rose and traders braced for the final week of a volatile September.

The Dow Jones Industrials gained 71.37 points to 34,868.37, as tech stocks struggled.

The S&P 500 sank 12.37 points, however, to 4,443.11.

The NASDAQ Composite tumbled 77.73 points to 14,968.97, as energy stocks and bank shares pushed higher.

Major tech stocks including Alphabet, Apple and Nvidia were lower in Monday’s session, weighing on the S&P 500 and NASDAQ. Tech stocks are seen as sensitive to rising yields because increased debt costs can hinder their growth and higher rates can make their future cash flows appear less valuable.

Carnival Corp rose 3.7% and United Airlines added 0.6%. Shares of Boeing jumped 1.3%.

T

he rise in yields appeared to boost financial stocks on Monday, with the KBW Bank Index climbing 2.9%. Shares of Goldman Sachs and JPMorgan Chase rose more than 2%, making them some of the best performers in the Dow.

Another bright spot for the market was energy, with stocks like Exxon Mobil and Occidental Petroleum climbing as WTI crude continued its September run, topping $75 a barrel. Natural gas prices also rose on Monday as investors monitored concerns of an energy shortage in Europe.

Also weighing on sentiment was a potential government shutdown to end the week.

Stocks linked to the economic comeback led the early gains as U.S. COVID cases continued to roll over.

U.S. cases averaged about 120,000 per day over the last week, according to data compiled by Johns Hopkins University, down from a 7-day average of more than 166,000 cases at the peak of this latest wave in early September. Pfizer CEO Albert Bourla said on Sunday that he thought the U.S. could return to normal “within a year” though annual vaccinations might be needed.

Additionally, the August reading for durable goods orders came in well above expectations on Monday, powered in large part by a jump for

the transport sector.

Prices for 10-Year Treasurys lost ground, raising yields to 1.49% from Friday’s 1.46%. Treasury prices and yields move in opposite directions.

Oil prices climbed $1.49 to $75.47 U.S. a barrel.

Gold prices dipped $1.60 to $1,750.10 U.S. an ounce.