US Stocks Drift Ahead of Key Earnings Report and Fed Speech
The US stock market is experiencing a calm before a potentially volatile week ahead. The S&P 500 slipped 0.2% on Monday, while the Dow Jones Industrial Average edged up by 67 points. The Nasdaq composite fell 0.5%. This week's schedule includes Nvidia's profit report, which may shed light on the strength of the AI boom, as well as a speech from Federal Reserve Chairman Kevin Warsh on Friday.
The bond market is also in focus, with yields easing after oil prices dipped. However, investors remain cautious due to rising bond yields and concerns over higher borrowing costs weighing on consumer spending. The US Treasury Department has announced plans to double its buybacks of longer-term bonds, but the 10-year Treasury yield rose back to 4.73% on Friday, matching its highest point in over a year.
The uncertainty surrounding the Iran war is also contributing to market volatility. Oil prices declined on Monday as Iran's currency hit a record low due to new US sanctions and a US naval blockade. The outlook remains murky, with tensions between the US and Iran continuing to rise.