Stocks Fall as Rates Keep Jumping - InvestingChannel

Stocks Fall as Rates Keep Jumping

Stocks fell on Monday as interest rates continued to climb on concerns over tighter monetary policy from the Federal Reserve that could slow economic growth.

The Dow Jones Industrials withered 187.19 points by noon to 34,533.93.

The S&P 500 lost 53.88 points to 4,434.42

The NASDAQ Composite subtracted 248.45 points, or 1.8%, to 13,462.55.

Concerns over higher interest rates have spurred investors to drop more risky assets, such as tech stocks that led losses on Monday.

Microsoft declined 3.8%. Semiconductor stocks such as Nvidia doffed 5.3%, and Advanced Micro Devices fell 4.3%.

Oil prices dropped on Monday amid fears that COVID lockdowns in China would depress global demand. International benchmark Brent crude declined 3.2% to trade at $99.45 per barrel. Meanwhile, West Texas Intermediate crude futures dropped 3%, to trade at $95.33 per barrel.

Energy stocks declined as a group. Occidental Petroleum is down 4.7%, Diamondback Energy is down 4.3% and ConocoPhillips fell 4%.

To be sure, airline stocks bucked the broader market’s negative trend, as Delta Air Lines spiked 4%. Alaska Air Group was up 2.7%, American Airlines Group jumped 2.8%, Southwest Airlines ticked upward 2.6% and United Airlines Holdings jumped 2.6%.

Meanwhile, AT&T popped 5.7% after spinning off its old WarnerMedia to merge with Discovery. JPMorgan analysts liked the decision, giving AT&T an overweight rating and saying the stock is now trading at a discount.

Twitter’s stock was on the move after CEO Parag Agrawal revealed that Elon Musk abandoned his plan to join the company’s board.

Treasury prices fell as yields increased to 2.76%, from Friday’s 2.71%. Treasury prices and yields move in opposite directions.

Oil prices doffed $4.48 to $93.78 U.S. a barrel.

Gold prices jumped $16.10 to $1,961 U.S. an ounce.

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