In late-morning trading on Monday, the major U.S. stock indexes displayed a mixed performance as the equities market grapples with the aftermath of a month-long sell-off driven by political and economic uncertainties. The Dow Jones Industrial Average climbed by 0.6%, while the S&P 500 increased by 0.3%. However, the tech-heavy Nasdaq Composite experienced a slight decline of 0.2%. This mixed activity comes after the major indexes achieved their largest one-day gains of the year last Friday, concluding a week of significant market volatility on a positive note.
Despite the rally observed on Friday, both the S&P 500 and Nasdaq have faced losses for four consecutive weeks. Notably, the Dow recorded its worst decline in two years last week. Investor sentiment has been heavily impacted by uncertainties surrounding the implications of policies from the Trump White House, particularly regarding tariffs, alongside concerns about a potential slowdown in U.S. economic growth.
This week, the spotlight is on the two-day meeting of the Federal Reserve's policy-setting committee, which is set to commence tomorrow. Although no adjustments to interest rates are anticipated, market participants will be keenly attentive to comments from Fed Chair Jerome Powell following the meeting, as well as the quarterly economic projections from committee members that will be disclosed.
The shares of major technology companies, which have been particularly vulnerable during the recent market downturn, were also trending downward on Monday. Tesla (TSLA), the electric vehicle manufacturer, saw its stock drop over 5%, marking a significant loss of more than 50% since peaking at a record high in December. Nvidia (NVDA), known for its AI chips, declined nearly 2% as excitement builds for its upcoming GPU Technology Conference. Other tech giants such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG), Meta Platforms (META), and Broadcom (AVGO) also recorded losses.
Among notable tech movers this morning, Intel (INTC) surged more than 6% as the struggling chipmaker continued its rally following the recent appointment of a new CEO. Conversely, Advanced Micro Devices (AMD) saw a rise of 4%, while Netflix (NFLX) gained nearly 4% after receiving an upgrade from MoffettNathanson.
In a significant market development, shares of Affirm Holdings (AFRM) plummeted by 11% after it was announced that rival Klarna will take over as Walmart's (WMT) exclusive provider of buy-now, pay-later loans. Additionally, Klarna has filed with the Securities and Exchange Commission for an initial public offering, which could further influence market dynamics.
The yield on the 10-year Treasury note has seen a decline in recent weeks amid growing concerns about the economy. It stood at 4.27% during recent trading, down from 4.31% at the close on Friday. This yield is crucial as it impacts borrowing costs across various types of loans, particularly mortgages, affecting the broader economic landscape.
