US stocks opened mixed on Monday as investors weighed elevated Treasury yields, falling oil prices and uncertainty in Europe, while looking ahead to the release of the Federal Reserve's September meeting minutes and the start of third-quarter earnings season.
Shortly after the open, the Dow Jones Industrial Average fell 0.2 per cent, while the S&P 500 rose 0.2 per cent and the tech-heavy Nasdaq Composite gained 0.4 per cent. US stocks had rallied on Friday after weaker-than-expected jobs data prompted investors to scale back expectations of further Federal Reserve rate hikes.
Yields at multi-year highs
The benchmark 10-year US Treasury yield rose 2 basis points to 5.30 per cent, hovering near its highest level since 2007. The 30-year Treasury yield climbed 3 basis points to 5.663 per cent. Both yields have risen sharply in recent weeks as investors assess the risk that persistent inflation could keep interest rates higher for longer.
The Federal Reserve cut its benchmark overnight rate by 25 basis points last month. Investors will get further insight into policymakers' thinking on Wednesday, when the central bank releases the minutes of its September meeting.
Markets have recently pared back expectations of further rate hikes after a weak US jobs report showed the economy added just 29,000 jobs in September — well below expectations — with employment growth in previous months also revised lower.
Oil eases, earnings season looms
Oil prices declined on Monday, easing some pressure on inflation-sensitive assets. Brent crude futures fell 0.6 per cent to $101.68 a barrel, while West Texas Intermediate crude was down about 1.6 per cent at $89.60 a barrel.
Investors are entering the first full trading week of October with US stocks still close to record levels despite rising borrowing costs. The S&P 500 ended Friday about 1 per cent below its August record high, leaving markets focused on whether corporate earnings and a potentially less hawkish Fed outlook can sustain the rally.
The earnings calendar remains relatively light this week, with results from companies including Levi Strauss, PepsiCo and Delta Air Lines due ahead of the broader third-quarter earnings season later this month.
Sources:
US stocks open mixed as investors weigh Treasury yields, Fed outlook
Shortly after the open, the Dow Jones Industrial Average fell 0.2 per cent, while the S&P 500 rose 0.2 per cent and the tech-heavy Nasdaq Composite gained 0.4 per cent. US stocks had rallied on Friday after weaker-than-expected jobs data prompted investors to scale back expectations of further Federal Reserve rate hikes.
Yields at multi-year highs
The benchmark 10-year US Treasury yield rose 2 basis points to 5.30 per cent, hovering near its highest level since 2007. The 30-year Treasury yield climbed 3 basis points to 5.663 per cent. Both yields have risen sharply in recent weeks as investors assess the risk that persistent inflation could keep interest rates higher for longer.
The Federal Reserve cut its benchmark overnight rate by 25 basis points last month. Investors will get further insight into policymakers' thinking on Wednesday, when the central bank releases the minutes of its September meeting.
Markets have recently pared back expectations of further rate hikes after a weak US jobs report showed the economy added just 29,000 jobs in September — well below expectations — with employment growth in previous months also revised lower.
Oil eases, earnings season looms
Oil prices declined on Monday, easing some pressure on inflation-sensitive assets. Brent crude futures fell 0.6 per cent to $101.68 a barrel, while West Texas Intermediate crude was down about 1.6 per cent at $89.60 a barrel.
Investors are entering the first full trading week of October with US stocks still close to record levels despite rising borrowing costs. The S&P 500 ended Friday about 1 per cent below its August record high, leaving markets focused on whether corporate earnings and a potentially less hawkish Fed outlook can sustain the rally.
The earnings calendar remains relatively light this week, with results from companies including Levi Strauss, PepsiCo and Delta Air Lines due ahead of the broader third-quarter earnings season later this month.
Sources:
US stocks open mixed as investors weigh Treasury yields, Fed outlook
