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Stock Market News for Oct 8, 2024

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U.S. stocks closed sharply lower on Monday as Treasury yields rose above 4% for the first time since August and investors worried about the impact of the Middle East crisis on oil prices. All three major indexes ended in negative territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) slid 0.9% or 398.51 points, to finish at 41954.24 points, recording its biggest one-day point and percentage decline since Sept. 6.

The S&P 500 fell 1% or 55.13 points, to end at 5,695.94 points. Consumer discretionary, communication services, financial and utilities stocks were the worst performers.

The Utilities Select Sector SPDR (XLU) slipped 2.3%. The Consumer Discretionary Select Sector SPDR (XLY) fell 1.6%, while the Communication Services Select Sector SPDR (XLC) declined 1.3%. The Financials Select Sector SPDR (XLF) lost 1.2%. Ten of the 11 sectors of the benchmark index ended in negative territory.

The tech-heavy Nasdaq declined 1.2% or 213.95 points to close at 17,923.90 points.

The fear-gauge CBOE Volatility Index (VIX) was up 17.86% to 22.64. Decliners outnumbered advancers on the NYSE by a 2.73-to-1 ratio. On the Nasdaq, a 2.31-to-1 ratio favored declining issues. A total of 11.39 billion shares were traded on Monday, lower than the last 20-session average of 12.06 billion.

Treasury Yields Climb to Two-Month High

A large number of factors have been worrying investors. On Monday, as investors waited for fresh inflation data and quarterly earnings season, they also braced for Hurricane Miltion, which is likely to make landfall this week.

Relief efforts are being made after the nation witnessed Hurricane Helene last month which claimed more than 200 lives across six states.

Amid these worries, the benchmark 10-year Treasury yield jumped more than 4 basis points to hit 4.02%, its highest since August.

The sharp jump in Treasury yields weighed on the markets, with stocks tumbling on Monday. Shares of Netflix, Inc. ((NFLX - Free Report) ) declined 2.5%%, while Apple Inc. ((AAPL - Free Report) ) ended 2.3% lower. Netflix carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Middle East Crisis Raises Concern

Investors are also concerned about the impact on crude oil prices owing to the ongoing crisis in the Middle East. U.S. crude oil price jumped more than 3% to settle at $77 per barrel. Energy stocks gained 0.4% on Monday. Energy stocks were the only sector in the S&P 500 to end in the green.

Investors are now awaiting the release of the key consumer price index reading for September, which is due Wednesday. Also, the earnings season kicks off this week, with JPMorgan Chase & Co. ((JPM - Free Report) ) and Delta Air Lines, Inc. ((DAL - Free Report) ) scheduled to report their quarterly results this week.

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