US equities were mixed on Monday as robust earnings expectations helped counter mounting pressure on corporate credit conditions from elevated bond yields. The S&P 500 was little changed, holding near its record high, while the Dow advanced about 200 points. In contrast, the Nasdaq 100 slipped 0.4%.
Across major economies, brokers issued buy recommendations across a range of sectors ahead of the September-quarter earnings season, signaling that companies have continued to deliver solid earnings growth despite the backdrop of higher interest rates. However, both energy prices and bond yields remained elevated as the war in the Middle East continued, keeping alive the risk of further Federal Reserve rate hikes this year.
Most sectors finished higher, with Meta and Salesforce gaining roughly 2% and 5%, respectively, in a strong session for software application names. By contrast, Micron, AMD, and Marvell each declined around 3%, as AI infrastructure stocks continued to trade with heightened volatility.
