Equities Slammed on Rate Fears - InvestingChannel

Equities Slammed on Rate Fears

Stocks fell on Monday as investors grew increasingly concerned a three-year high in the benchmark U.S. interest rate would start to slow the economy.

The Dow Jones Industrials hit the “down” switch on the elevator, 413.04 points, or 1.2%, to close Monday at 34,308.08.

The S&P 500 lost 75.75 points, or 1.7%, to 4,412.53

The NASDAQ Composite subtracted 299.04 points, or 2.2%, to 13,411.96.

Concerns over higher interest rates have spurred investors to drop more risky assets, such as tech stocks that led losses on Monday. Microsoft declined 3.9%. Semiconductor stocks such as Nvidia fell 5.2%, and Advanced Micro Devices lost 3.6%.

Oil prices dropped on Monday amid fears that COVID lockdowns in China would depress global demand. International benchmark

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 popped 1%, American Airlines Group jumped 2.3%, Southwest Airlines ticked upward 3.4% and United Airlines Holdings jumped 1.1%.

Meanwhile, AT&T surged 7.7% after spinning off 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. Shares for the social media company dropped more than 8% in the pre-market, but had recovered to gain 1.7% in Monday trading.

Later this week, the first-quarter earnings season will hit its stride with some major banks and airlines reporting earnings. On Wednesday, JPMorgan and Delta Air Lines will report their earnings before the bell. On Thursday, Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo are expected to report before markets open.

Treasury prices fell as yields increased to 2.77%, from Friday’s 2.71%. Treasury prices and yields move in opposite directions.

Oil prices doffed $3.35 to $94.91 U.S. a barrel.

Gold prices jumped $11.40 to $1,957 U.S. an ounce.

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