Traders took a cautious approach Monday as they await two critical inflation reports due later this week, seeking clarity on the Federal Reserve’s interest rate policy.
Additionally, the start of earnings season, led by major banks on Wednesday, added a more neutral note to the market.
The S&P 500 and the Nasdaq 100 fell, continuing the decline that began on Friday following the unexpected publication of employment data. The lack of enthusiasm to “buy the dip” in technology indexes signaled continued uncertainty among investors.
Conversely, the Dow Jones Industrial Average gained, supported by a rebound in energy stocks. Rising oil prices provided a boost, with crude up more than 3% West Texas Intermediate (WTI) to approach 78 dollars per barrel, a level which had not been seen since mid-August 2024. This surge is explained by the American sanctions against Russian crude oil exports announced on Friday, which modified the Market expectations regarding supply and demand.
Treasury yields extended higher, with the 10-year bond yield rising to 4.79% and the 30-year bond yield rising to 4.97%, reflecting strengthened expectations for tighter monetary policy. Analysts at Bank of America Securities dropped a bombshell by pointing to increased risks for a rate hike as the Fed’s next move.
The commodity markets were the scene of contrasting movements. Monday, l’or suffered its sharpest daily loss in nearly a month, falling more than 1% as yields rose and weighed on the precious metal. Meanwhile, the copper experienced a modest rebound with an increase of 0.8% after a decrease of 0.5% the previous Friday.
Cryptocurrencies faced renewed volatility, with a 3% decline in Bitcoin (CRYPTO: BTC) to fall below $92,000, briefly touching a two-month low. The repercussions extended to crypto-related stocks: MicroStrategy Inc. (NASDAQ:MSTR) lost more than 3%, while Coinbase Global Inc. (NASDAQ:COIN) lost almost 4%.
| Major clues | Prix | Variation over 1 day in % |
| Dow Jones | 42 144,04 | 0,5 % |
| S&P 500 | 5 822,92 | -0,1 % |
| Russell 2000 | 2 183,39 | -0,2 % |
| Nasdaq 100 | 20 739,92 | -0,5 % |
According to data from Benzinga Pro:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.1% to $579.98.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.7% to $422.03.
- The Invesco QQQ Trust Series (NASDAQ:QQQ) fell 0.6% to $504.44.
- The iShares Russell 2000 ETF (NYSE:IWM) fell 0.3% to $216.19.
- The Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, rising 2.3%; THE Technology Select Sector SPDR Fund (NYSE:XLK) ended down 1.1%.
Stock market movements on Monday
- Stocks of major oil and gas giants rebounding on Monday include Valero Energy Corp (NYSE:VLO), and up 5%, Baker Hughes Co. (NASDAQ:BKR) up 3.9% and Marathon Petroleum Corp. (NYSE:MPC) up 3.5%.
- Health insurance companies rebounded after a draft government proposal suggesting higher payments for Medicare Advantage plans in 2026, boosting investor sentiment in the sector.
- The actions of Humana Inc. (NYSE:HUM) rose 7.8%, CVS Health Corp. (NYSE:CVS) followed closely with a jump of 6.9%, while UnitedHealth Group Inc. (NYSE:UNH) saw its price soar by 4.8%.
- NVIDIA Corp. (NASDAQ:NVDA) fell 2.7% to $132.19 as the AI chipmaker urged the president-elect Donald Trump to oppose the Biden administration’s regulations on AI technology. At the same time, HSBC reduced its price target from $195 to $185, while reaffirming its buy rating.
- Modern Inc. (NASDAQ:MRNA) fell 20% after projecting 2025 revenues of between $1.5 billion and $2.5 billion, lower than analyst estimates of $2.92 billion. The company also announced that it would accelerate its cost-cutting measures.
- Edison International (NYSE:EIX) fell 12% as authorities investigated whether equipment at its Southern California Edison subsidiary played a role in igniting the Hurst Fire in Los Angeles.
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