Stock market today: Dow, S&P 500, Nasdaq diverge amid bond market caution
US stocks struggled for direction on Monday as investors took stock of rising bond yields, eurozone economic uncertainty, and the upcoming earnings season ahead of a relatively quiet week.
The Dow Jones Industrial Average (^DJI) fell 0.2%, while the S&P 500 (^GSPC) rose 0.4%. The tech-heavy Nasdaq Composite (^IXIC) gained 0.7%. Markets ended last Friday in a rally on pared-back Fed rate-hike bets.
The 10-year Treasury yield (^TNX) rose 2 basis points to 5.30%, hovering near its highest levels since 2007.
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Monday marks a light day as far as the earnings and economic calendars are concerned, with the latest readings from S&P Global and the Institute of Supply Management’s purchasing managers’ indexes highlighting Monday’s releases.
The ISM services index showed activity accelerated in September to 55.9 from 55.4 in August while its prices index signaled fresh cost pressure, climbing to 74 from 72.6 over the same period.
Later this week, attention will turn to the quarterly results of Levi Strauss & Co. (LEVI), Applied Digital (APLD), PepsiCo (PEP), and Delta Air Lines (DAL) before the Q3 earnings season kicks off in earnest in mid-October.
The market has remained remarkably resilient amid recent turmoil in the bond market and the ongoing war in the Middle East. The 10-year Treasury yield (^TNX) at 5.28% and Brent crude oil futures (BZ=F) above $100 per barrel have put investors on edge, with some strategists seeing plenty of reasons for a pullback — while others see more room for a rally to run.