US Stock Market: DJIA, S&P500 and Nasdaq turns red in early trade on Monday

Stocks declined in morning trading on Wall Street Monday as the market cools down after a winning week.

The S&P 500 fell 6.54 points or 0.17% to 3,905.20 as of 10:42 am Eastern time zone. The Dow Jones Industrial Average fell 72 points or 0.2% to 31,428. The Nasdaq fell 64.84 points or 0.6% to 11,542.78.

Also Read | New York governor Kathy Hochul to face a crowded Democratic primary

Big technologies companies were among the heaviest weights on the market. Chipmaker Nvidia slipped 2.1%. Retailers, travel sector companies, and others that rely on direct consumer spending also fell broadly. Amazon fell 1.9% and Carnival slipped 4.9%.

European markets were mixed and Asian markets closed higher on Monday. Treasury yields were mostly higher. The yield on the 10-year Treasury bonds, which helps set mortgage rates, rose to 3.17% from 3.12% late Friday.

Also Read | US Premarket: Spirit, Coinbase, BioNTech and other stocks making biggest moves

Last week, the stock settled with solid gains and the S&P 500 had its best day in two years on Friday. It was a welcome rally amid a deep slump for Wall Street as investors are concerned about the direction of inflation and whether rising interest rates will curb the impact on businesses and consumers or push the economy into a recession.

Also Read | Why Sri Lankan government is sending 2 ministers to Russia amid fuel crisis

The Federal Reserve and other central banks have been aggressively increasing interest rates in a sharp turnaround from maintaining ultra-low rates during the virus pandemic that helped support the economy. It’s a delicate balance for the Fed, which hopes to slow down the economy, but not so much that it contracts. Higher interest rates have hurt prices for investors and have prompted much of the year’s sell-off.

Also Read | Atlanta Subway worker fatally shot by customer over bizarre reason 

Investors have been watching recent reports that showed weak consumer sentiment and economic growth because that raises the possibility that the Fed will ease off its plan for aggressive rate hikes as economic growth slows.

A few more reports will be released this week that could provide more insight into inflation, economic growth, and the Fed’s path ahead.

Also Read | Inflation, gun violence sinks Biden’s approval rating to record low: Report

US crude oil prices were relatively stable on Monday, but are higher than 40% for the year. Prices for wheat and corn have also increased.