S&P 500 Swings Amid Tech Rally and Retreating Treasury Yields
The S&P 500 experienced a volatile day of trading on Monday, with investors closely watching retreating Treasury yields and a surge in tech stocks ahead of big tech companies’ quarterly earnings announcements.
Treasury Yields Retreat from Highs
Treasury yields slipped after reaching multi-year highs. The yield on the 10-year Treasury note fell to 4.854% from a 16-year high of 5.025%. This decline in yields can be attributed to various factors, including stronger-than-expected economic growth, persistent inflation, and an increase in borrowing by the U.S. Treasury.
Big Tech Back in Focus Ahead of Earnings
Tech stocks started the week on a positive note as investors eagerly anticipate the quarterly earnings reports of major tech companies. Microsoft Corporation and Alphabet are set to announce their September quarter results on Tuesday. Despite facing regulatory concerns, Alphabet’s shares rose as the Japanese Federal Trade Commission launched an investigation into alleged antitrust violations related to ad-revenue sharing with android phone makers.
Other tech giants such as Meta Platforms, International Business Machines, Amazon, and Intel are scheduled to release their earnings on Wednesday and Thursday.
Energy Struggles as Chevron Makes $53B Deal
Chevron Corp faced a more than 3% decline, weighing down the energy sector, after announcing a $53 billion deal to acquire Hess Corporation. This acquisition is expected to strengthen Chevron’s assets in Guyana and increase its overall oil and gas output.
In addition to Chevron’s decline, energy stocks were also affected by a 2% drop in oil prices, despite ongoing concerns about potential oil supply disruptions due to the Israel-Hamas conflict.
By considering these market movements, investors can make informed decisions and navigate the dynamic landscape of the S&P 500.
