Investing.com – The S&P 500 made a subdued start the week Monday, as bank stocks stumbled on falling Treasury yields amid growing expectations that the Fed will cut rates.
The S&P 500 rose 0.09%, the Dow Jones Industrial Average climbed 0.09%, while the Nasdaq Composite added 0.62%.
With the two-day Federal Open Market Committee meeting set to get underway on Tuesday, a dire U.S. regional manufacturing report on Monday supported expectations the central bank could deliver a rate cut as soon as July.
The New York Fed’s Empire State business conditions fell into negative territory for the first time in more than two years, fueling fears that other manufacturing data will come up short.
More than 60% of traders expect the Fed to cut rates in July, according to Investing.com's Fed Rate Monitor Tool
Against the backdrop of increasing odds of a rate cut, U.S treasury yields continued to flounder, keeping bank stocks on the backfoot.
Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) and JPMorgan Chase & Co (NYSE:JPM) ended the day lower, as United States 10-Year yields retreated further into the red after notching a six-week losing streak last week.
Losses in financials were countered somewhat by a rise in tech stocks, led by Facebook.
Facebook (NASDAQ:FB) rallied 4.2% as analysts expressed optimism over the social media giant's upcoming launch of its cryptocurrency.
"We believe this may prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams," RBC analyst Mark Mahaney said.
Among other FANG stocks, Netflix (NASDAQ:NFLX) also delivered a notable performance, rising 3.2%.
Energy stocks, meanwhile, rose nearly 1%, supporting the broader market even as oil prices dropped on fears of slowing global oil-demand growth in the wake of escalating tensions between the U.S. and China
Trade sensitive industrials were lifted by a rise in Boeing (NYSE:BA) after the aircraft maker raised its rolling 20-year global demand forecast for passenger aircraft on expectations for a surge in commercial air travel, defense and services markets growth.
In other company news, Beyond Meat (NASDAQ:BYND) recouped some of its losses from last week, rising 12.2% as the plant-based food company confirmed a report that its a new ground beef product is expected to hit grocery stores on June 24.
Top S&P 500 Gainers and Losers Today:
Incyte (NASDAQ:INCY), DISH Network (NASDAQ:DISH), and Facebook (NASDAQ:FB) were among the top S&P 500 gainers for the session.
Align Technology (NASDAQ:ALGN), Ecolab (NYSE:ECL) and Tyson Foods (NYSE:TSN) were among the worst S&P 500 performers of the session.