Mixed US Stock Open Amid High Yields and Oil Prices
US stocks began the week on a mixed note, with the Dow Jones slipping 98 points while the S&P 500 and Nasdaq inched higher by 0.2% and 0.43%, respectively. The subdued performance followed a strong rally in tech shares on Friday, driven by weaker-than-expected jobs data that eased expectations for a Federal Reserve rate hike in October.
Investors kept a close watch on elevated Treasury yields and rising oil prices, which could influence the Fed's policy outlook. The 10-year Treasury yield hovered around 5.30%, while the 30-year yield neared 5.66%, both hitting multi-year highs. The Fed's September meeting minutes, due Wednesday, may provide further clarity on interest rate decisions.
Chip stocks faced pressure, with Intel dropping 2.4% and Micron Technology declining 0.83%. In contrast, Nvidia gained 1.28% after setting a record high on Friday. Individual movers included PTC, which surged 35.7% after Schneider Electric agreed to acquire it for $22.6 billion, and RXO, which rose 23% following a $5.8 billion deal with C.H. Robinson Worldwide.
Looking ahead, the upcoming earnings season, with around 70% of the S&P 500 companies reporting results by the end of October, remains a key focus. Analysts at Goldman Sachs predict a 9% year-over-year growth in median earnings for the quarter. Meanwhile, oil prices remained volatile, with Brent crude at $101.88 and West Texas Intermediate at $89.32, raising concerns about sustained inflation pressures.