US stocks mixed as Treasury yields and oil prices weigh on markets
US stocks opened with modest changes on Monday, as investors closely watched Treasury yields and oil prices for signals about the Federal Reserve's interest rate decisions. The Dow Jones Industrial Average dropped 98 points, while the S&P 500 rose 0.2% and the Nasdaq Composite gained 0.43%. The subdued start followed a strong performance by technology stocks on Friday, which pushed the Nasdaq to a record high after weaker-than-expected US jobs data lowered expectations for an October rate hike.
Chip stocks were among the biggest losers, with Intel shares falling 2.4% and Micron Technology declining 0.83%. Nvidia managed a slight gain of 1.28% after reaching a record high on Friday. Investors are also preparing for the upcoming earnings season, with around 70% of the 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 movements. PTC surged 35.7% after Schneider Electric agreed to acquire the software company in an all-cash deal valuing it at about $22.6 billion. RXO rose 23% following C.H. Robinson Worldwide's agreement to acquire the transportation broker in a $5.8 billion stock-and-cash deal. Cerebras Systems gained 4.4% after OpenAI CEO Sam Altman described the chip designer as a close partner.
Treasury yields remained elevated, with the benchmark 10-year yield around 5.30% and the 30-year yield near 5.66%. Both yields have hit multi-year highs recently as investors assess inflation risks and government finances. The Federal Reserve raised its overnight interest rate by 25 basis points last month, and investors will get more details when the central bank releases minutes from its September meeting on Wednesday.
Markets currently see an 80% probability that the Fed will leave rates unchanged at its October meeting, but expectations for a December rate hike remain high. Investors are also monitoring September services-sector activity data and oil prices, which have added to concerns about elevated energy costs and inflation pressures.