Stocks slipped on Monday as Wall Street struggled to keep the momentum from Friday’s rally. Chinese ADRs and ETFs jumped. YINN rises 8%.
Adding pressure to futures was an uptick in U.S. Treasury yields. The benchmark 10-year Treasury yield rose nearly 3 basis points to 4.008%. That marks the first time since August that the yield topped 4%.
Higher oil prices also weighed, as tensions in the Middle East remain high. U.S. crude climbed more than 2% to more than $76 per barrel.
The move in futures comes after a bumpy week for stocks that saw the major averages grind out modest gains. The S&P 500 added 0.2% for the week, while the Nasdaq Composite inched up 0.1% and the Dow added 0.1%.
It was the fourth winning week in a row for all three averages, helped by a stronger-than-expected jobs report on Friday that gave more support to the idea that the Federal Reserve may pull off a “soft landing” for the U.S. economy. The Dow closed at a record high after the report.
“Two old adages on Wall Street: don’t fight the trend and don’t fight the Federal Reserve. ... These remain among two key pillars for today’s equity market,” Truist Wealth co-chief investment officer Keith Lerner said in a note Friday.
However, Lerner did caution that the looming U.S. presidential election and the potential for so-called “October surprise” could keep market volatility elevated in the coming weeks.
On the economic front, key releases in the week ahead include the Federal Reserve meeting minutes on Wednesday and the consumer price index report on Thursday. Earnings season also starts to heat up, with results from Delta Air Lines and JPMorgan Chase due out Thursday and Friday, respectively.
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