Please try another search
© Reuters.
Investing.com -- The dow closed lower Monday, paced by slump in energy and utilities as Treasury yields continued to march higher after the U.S. averted a government shutdown with a last-ditch funding measure to keep the government funded for 45 days.
The Dow Jones Industrial Average slipped 0.2%, 74 points, Nasdaq rose 0.7%, and the S&P 500 was flat.
Energy fell 2%, paced by decline in EQT Corporation (NYSE:EQT), Marathon Oil Corporation (NYSE:MRO) and APA Corporation (NASDAQ:APA), as oil prices were dragged lower by concerns about rising supply and a higher dollar.
Still, oil prices remained above $90 a barrel, with some forecasting a boost in demand from China’s annual ‘Golden Week’ holiday.
“Oil demand looks strong with China starting its Golden Week holidays,” ANZ Research said in a recent note, referring to the eight-day annual event in China, which got underway last week Friday, and typically sparks demand for travel and spending.
Treasury yields were pushed higher by growing expectations for another Federal Reserve interest rate hike after the U.S. government averted a shutdown.
The 2-year Treasury yield rose 5.2 points to 5.098%, while the 10-year Treasury yield rose 12 basis points to 4.696%.
Congress passed a short-term funding measure to keep the government funded through Nov. 17, avoiding a shutdown that many had expected to dent near-term economic growth.
About 30% of traders expect the fed to lift rates next month, up from about 18% last week, according to Investing.com’s Fed Rate Monitor Tool.
Big tech cut some gains, pressured by rising Treasury yields, the enemy of growth stocks, though remained supported by a rise in Alphabet (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META).
NVIDIA Corporation (NASDAQ:NVDA), up 3%, also helped support the broader tech sector after Goldman Sachs added the chipmaker to its “conviction buy list,” which typically includes the stock that the bank believes is likely to outperform.
Nvidia is likely to maintain its status as “the accelerated computing industry standard for the foreseeable future given its competitive moat and the urgency with which customers are developing and deploying increasingly complex AI models,” Goldman Sachs in a recent note.
Utilities, commonly used as a bond proxy given the sector's steady dividends, were also hurt by rising Treasury yields, with Nextera Energy Inc (NYSE:NEE) and The AES Corporation (NYSE:AES) leading to the downside.
Tesla (NASDAQ:TSLA) was flat after reporting Monday that it produced 430,488 vehicles in the third quarter, down from 479,700 in the previous quarter, owing to a planned shutdown for factory upgrades.
The electric vehicle maker, however, kept its full-year production guidance of about 1.8 million unchanged. Tesla will require a “strong 4Q” to hit this number, Wedbush said, adding it sees “better days ahead [for Tesla] for 4Q and 2024.”
Tesla is set to release its Q3 results after market close on Oct. 18.
Bitcoin rose 3%, sparking a climb in cryptocurrency-related stocks including Riot Platforms (NASDAQ:RIOT), MicroStrategy Incorporated (NASDAQ:MSTR).
Coinbase Global Inc (NASDAQ:COIN) gave up some gains to trade just above the flatline after acquiring a payment licence in Singapore, paving the way for the crypto exchange to offer digital payment services to individuals and investors in the country.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Author
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.