On Monday morning, stock markets are witnessing a decline, continuing the negative trend observed at the session's start. The Nasdaq and S&P 500 are amplifying the sharp losses endured last Friday, although the Dow has shown resilience against this downward trend.
At present, the Nasdaq has fallen by 253.05 points, or 1.3%, settling at 18,908.58, while the S&P 500 has decreased by 33.15 points, or 0.6%, to 5,793.89. Conversely, the Dow has increased by 148.14 points, or 0.4%, reaching 42,086.59.
The persistent decline in tech stocks is exerting significant pressure on Wall Street, as evident from the substantial drop in the tech-centric Nasdaq, now at its lowest point in nearly two months. Nvidia (NVDA), a prominent player in AI, is significantly driving this sectoral decline, with its shares plunging 3.2% today.
Quantum computing stocks are also experiencing a downturn after Meta CEO Mark Zuckerberg echoed Nvidia CEO Jensen Huang's sentiments, stating that quantum computing is at least a decade away from becoming a "useful paradigm."
Investor anxiety over interest rate projections has intensified following last Friday's robust monthly employment report, contributing to heightened selling pressure. These concerns have recently propelled bond yields upward, with the ten-year note yield reaching its highest level in over a year.
In the days ahead, upcoming reports on consumer and producer price inflation may offer further clarity on rate expectations. Additionally, reports on weekly jobless claims, retail sales, and industrial production will likely garner attention later in the week.
The earnings season is gaining momentum this week, with financial titans such as Citigroup (C), Goldman Sachs (GS), JPMorgan (JPM), and Wells Fargo (WFC) slated to release their quarterly earnings.
Meanwhile, the Dow's upward movement is partly attributed to a significant gain by UnitedHealth (UNH) after the U.S. government proposed an average total increase of 4.3% to the 2026 reimbursement rates for Medicare Advantage plans.
Sector Overview:
Airline stocks have experienced a sharp decline after resisting the downward trend on Friday, with the NYSE Arca Airline Index plummeting 2.9%, retreating from its highest closing level in two months. Significant weakness is also present among computer hardware stocks, evidenced by the 2.8% drop in the NYSE Arca Computer Hardware Index. Gold, utilities, and semiconductor stocks are displaying considerable weakness, whereas oil producer, steel, and natural gas stocks are achieving strong performances today.
Global Markets:
In international trading, stock markets across the Asia-Pacific region mostly trended lower on Monday, with Japanese markets closed for a holiday. China's Shanghai Composite Index decreased by 0.3%, while Hong Kong's Hang Seng Index fell by 1.0%.
Major European markets also trended downward today. The U.K.'s FTSE 100 Index is down by 0.2%, and both the French CAC 40 Index and the German DAX Index have declined by 0.3%.
In the bond market, treasuries continue to exhibit weakness following last Friday's substantial drop. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, has risen by 2.7 basis points to 4.801%.
