Closing Stock Market SummaryThe S&P 500 lost 0.7% on Monday, as the negative impact to growth stocks following another rise Treasury yields outweighed the benefit of weaker oil prices ($102.82, -6.28, -5.8%). The Nasdaq Composite (-2.0%) and Russell 2000 (-1.9%) both fell about 2%, while the Dow Jones Industrial Average finished flat.
Declining issues outpaced advancing issues by roughly a 3:1 margin at the NYSE and Nasdaq. The S&P 500 information technology (-1.9%), communication services (-1.8%), and consumer discretionary (-1.8%) sectors, which contain the mega-caps, were among the laggards next to the energy sector (-2.9%).
Conversely, the financials sector (+1.3%) followed rates to the top of the leaderboard. The health care (+0.7%), consumer staples (+0.6%), and industrials (+0.3%) sectors posted more modest gains. A handful of stocks within these sectors were responsible for the relative outperformance of the Dow.
Early on, the market appreciated the decline in oil prices, which briefly fell below $100.00 per barrel after Russia and Ukraine reported progress in ceasefire negotiations. Russia's military actions suggested otherwise, but to be fair, both sides paused today's talks to go over technical language tomorrow.
The S&P 500 was up 1.0% intraday even as Treasury yields were on the rise. The higher rates were catalyzed overnight after China locked down Shenzhen, a major technology hub, due to a COVID-19 outbreak. The potential for increased supply disruptions fed into inflation expectations, and in turn, rate-hike expectations.
The growth stocks, unfortunately, coughed up gains and led the market lower as Treasury yields refused to let up. The 2-yr yield settled higher by nine basis points to 1.84%, and the 10-yr yield settled higher by 14 basis points to 2.14%. The U.S. Dollar Index was roughly unchanged at 99.09.
Selling interest picked up as the S&P 500 was unable to hold onto the psychological 4200 level. Apple (AAPL 150.62, -4.11, -2.7%) was a particular drag, breaking below its 200-day moving average (153.74) amid news that Foxconn halted production at an iPhone factory because of the Chinese lockdown.
Uber (UBER 29.27, -1.49, -4.8%), meanwhile, announced a fuel surcharge for customers, exacerbating concerns that inflation will slow down consumer spending. UBER shares fell 5%.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive the Producer Price Index for February and the Empire State Manufacturing Survey for March on Tuesday.
- Dow Jones Industrial Average -9.3% YTD
- S&P 500 -12.4% YTD
- Russell 2000 -13.5% YTD
- Nasdaq Composite -19.6% YTD