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U.S. stocks closed mostly higher on Monday, with the Dow recording its fourth consecutive day of gains ahead of Fed Chair Jerome Powell’s congressional testimony and the all-important jobs reports that will be released later this week. The S&P 500 also managed to hold on to last week’s gains but the Nasdaq ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.1% or 40.47 points to end at 33,431.44 points.
The S&P 500 rose 0.1% or 2.78 points to close at 4,048.42 points. Materials and consumer discretionary stocks were the biggest gainers, while tech stocks gained.
The Materials Select Sector SPDR (XLB) and the Consumer Discretionary Select Sector SPDR (XLY) declined 1.6% and 0.7%, respectively. The Technology Select Sector SPDR (XLK) gained 0.5%. Six of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq declined 0.1% or 13.27 points to finish at 11,676.74 points.
The fear-gauge CBOE Volatility Index (VIX) was up 0.65% to 18.61.
Treasury Yields Jump
Wall Street opened higher on Monday but closed well off their session highs. Trading remained volatile for most of the session as robust economic data released last week has made investors worry that the Fed might continue raising interest rates for a longer period than expected in its fight to bring down inflation.
On Monday, Treasury yields rose once again, with the 10-year Treasury note trading up more than 1 basis point after crossing the psychological level of 4% last week on multiple occasions. However, the 10-year Treasury note fell below the 4% mark on Friday which sent high-growth stocks on a rally.
Investors have been keeping an eye on 4% as the critical level since it may signal the start of another stock market decline. The 10-year Treasury yield is a benchmark rate that affects mortgages and auto loans, so a breakout in that rate might have an effect on the economy.
Investors are also awaiting Fed Chair Jerome Powell’s congressional testimony which is scheduled for Tuesday and Wednesday. His testimony will be vital in helping the investors gauge how the Fed plans to bring down inflation and how long it will continue hiking interest rates. This will also give investors a clearer idea about where the market goes from here.
Although the week has begun on a slow note, a deluge of economic data is scheduled for release this week, most importantly the jobs data, which will help investors assess the direction toward which the economy is headed.
Economic Data
In economic data released on Monday, the Census Bureau said that factory orders declined 1.6% in January after increasing 1.7% in December.
Image: Bigstock
Stock Market News for Mar 7, 2023
U.S. stocks closed mostly higher on Monday, with the Dow recording its fourth consecutive day of gains ahead of Fed Chair Jerome Powell’s congressional testimony and the all-important jobs reports that will be released later this week. The S&P 500 also managed to hold on to last week’s gains but the Nasdaq ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.1% or 40.47 points to end at 33,431.44 points.
The S&P 500 rose 0.1% or 2.78 points to close at 4,048.42 points. Materials and consumer discretionary stocks were the biggest gainers, while tech stocks gained.
The Materials Select Sector SPDR (XLB) and the Consumer Discretionary Select Sector SPDR (XLY) declined 1.6% and 0.7%, respectively. The Technology Select Sector SPDR (XLK) gained 0.5%. Six of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq declined 0.1% or 13.27 points to finish at 11,676.74 points.
The fear-gauge CBOE Volatility Index (VIX) was up 0.65% to 18.61.
Treasury Yields Jump
Wall Street opened higher on Monday but closed well off their session highs. Trading remained volatile for most of the session as robust economic data released last week has made investors worry that the Fed might continue raising interest rates for a longer period than expected in its fight to bring down inflation.
On Monday, Treasury yields rose once again, with the 10-year Treasury note trading up more than 1 basis point after crossing the psychological level of 4% last week on multiple occasions. However, the 10-year Treasury note fell below the 4% mark on Friday which sent high-growth stocks on a rally.
Investors have been keeping an eye on 4% as the critical level since it may signal the start of another stock market decline. The 10-year Treasury yield is a benchmark rate that affects mortgages and auto loans, so a breakout in that rate might have an effect on the economy.
High-growth stocks are affected the most when the Treasury yield climbs. However, tech stocks still managed to gain on Monday despite the rise. Shares of Apple, Inc. (AAPL - Free Report) gained 1.9%, while Microsoft Corporation (MSFT - Free Report) rose 0.6%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Investors Await Powell’s Testimony
Investors are also awaiting Fed Chair Jerome Powell’s congressional testimony which is scheduled for Tuesday and Wednesday. His testimony will be vital in helping the investors gauge how the Fed plans to bring down inflation and how long it will continue hiking interest rates. This will also give investors a clearer idea about where the market goes from here.
Although the week has begun on a slow note, a deluge of economic data is scheduled for release this week, most importantly the jobs data, which will help investors assess the direction toward which the economy is headed.
Economic Data
In economic data released on Monday, the Census Bureau said that factory orders declined 1.6% in January after increasing 1.7% in December.