Dow Dips as Treasury Yields and Oil Prices Weigh on Markets
US stocks opened mixed on Monday, with the Dow Jones Industrial Average down 98 points, while the S&P 500 and Nasdaq Composite posted modest gains. The market's subdued start followed a strong session for technology stocks on Friday, driven by weaker-than-expected US jobs data that reduced expectations for an October rate hike by the Federal Reserve.
Investors remained focused on elevated Treasury yields and rising oil prices, which could influence the Fed's interest rate outlook. The benchmark 10-year Treasury yield hovered around 5.30%, while the 30-year yield stood near 5.66%, both reaching multi-year highs. Chip stocks were among the biggest losers, with Intel shares falling 2.4% and Micron Technology declining 0.83%. Nvidia edged up 1.28% after reaching a record high on Friday.
Corporate deal-making also made headlines, with PTC surging 35.7% after Schneider Electric agreed to acquire the software company for about $22.6 billion. RXO rose 23% following C.H. Robinson Worldwide's $5.8 billion stock-and-cash deal to acquire the transportation broker. Cerebras Systems gained 4.4% after OpenAI CEO Sam Altman described the chip designer as a close partner.
Investors are also looking ahead to the upcoming earnings season, with around 70% of the S&P 500’s market capitalization expected to report results by the end of October. Goldman Sachs analysts predict median S&P 500 earnings to grow 9% year over year this quarter. The market is currently pricing in an 80% probability that the Fed will leave rates unchanged at its October meeting, but expectations for a December rate hike remain elevated.