US Stocks Mixed as Treasury Yields and Oil Prices Rise

US stocks kicked off the week with a mixed performance, as technology shares retreated from recent highs. The Dow Jones Industrial Average dropped 98 points, while the S&P 500 and Nasdaq Composite gained 0.2% and 0.43%, respectively. This followed a strong session for tech stocks on Friday, driven by weaker-than-expected US jobs data that eased expectations of an October interest rate hike.

Chip stocks weighed on the market, with Intel falling 2.4%, Micron Technology declining 0.83%, and Nvidia edging up 1.28% after hitting a record high on Friday. Investors are also eyeing the upcoming earnings season, with around 70% of S&P 500 companies expected to report results by the end of October. Recent corporate optimism has helped US stocks outperform global markets despite geopolitical risks and inflation concerns.

Individual stocks saw significant moves, including PTC, which surged 35.7% after Schneider Electric agreed to acquire it for about $22.6 billion. RXO rose 23% following a $5.8 billion acquisition deal by C.H. Robinson Worldwide. Cerebras Systems gained 4.4% after OpenAI CEO Sam Altman described it as a close partner.

Treasury yields remained elevated, with the 10-year yield around 5.30% and the 30-year yield near 5.66%. The Federal Reserve raised its overnight interest rate by 25 basis points last month, and investors await further details from the September meeting minutes due Wednesday. Markets currently see an 80% probability of no rate change in October, but expectations for a December hike remain high.

Oil prices also remained a key focus, with Brent crude futures falling 0.3% to $101.88 a barrel and West Texas Intermediate trading around $89.32. The rise in oil prices has added to concerns about inflation and the Federal Reserve’s policy outlook. US stocks entered October after a volatile week marked by higher yields and a weaker-than-expected jobs report, which reduced expectations for an October rate increase.