Mixed US Stock Open as Treasury Yields Remain Elevated and PMIs Show Strong Growth
US stock markets opened on a mixed note on Monday, with investor sentiment dampened by persistently high Treasury yields. The Dow Jones Industrial Average dipped 0.26% to 51,043.45, while the S&P 500 and Nasdaq Composite showed slight gains, rising 0.29% and 0.55% respectively. The 10-year Treasury yield climbed to 5.303%, its highest level in over two decades, raising concerns about the impact of elevated borrowing costs on equities.
Traders are eagerly awaiting the release of minutes from the Federal Reserve's latest meeting, set for Wednesday, for clues on the future trajectory of interest rates. The focus comes amid strong economic data, with the S&P Global services PMI jumping to 58.8 in September, marking the strongest expansion in over five years. The Institute for Supply Management also reported continued growth in the US services sector, with its Services PMI at 54.9.
Among individual stocks, Cisco Systems and Microsoft led the gains in the Dow, rising 2.14% and 1.74% respectively. However, Intel and Caterpillar were among the notable decliners, falling 6.04% and 2.46% respectively. In the S&P 500, Seagate Technology surged 11.04%, while Nektar Therapeutics dropped 8.63%. The Nasdaq 100 saw Mercadolibre and Western Digital among the top performers, with gains of 8.53% and 6.20% respectively.
Oil prices also came under pressure after the G7 announced plans to release fuel reserves. With no major corporate earnings scheduled for Monday, market participants remain focused on the Fed's policy signals and the broader economic outlook.