The S&P 500, Dow and Nasdaq Composite all closed lower Monday as rising Treasury yields rattled equities. The 10-year yield climbed above 5.2%, near levels not seen since 2007, while futures pointed to a steadier open ahead of Tuesday's consumer confidence and jobs data.
Treasury yields drove another losing session on Wall Street Monday. The Dow fell more than 300 points in regular trading. The S&P 500 and Nasdaq Composite shed 0.8% and 0.9%, respectively.
Yields climb to multi-decade highs
The pressure came from Treasury yields, which kept marching higher as investors worried that persistent inflation would push the Federal Reserve toward further rate increases. The 10-year Treasury note yield ended the day above 5.2%, a level not seen since 2007. The 30-year yield topped 5.56%, trading around a 2004 high.
According to Brent Schutte, CIO at Northwestern Mutual Wealth Management: "Higher interest rates create both opportunities and challenges for investors." He added that bonds now offer more attractive entry points than at any time in nearly 20 years, assuming the Fed keeps inflation in check.
Futures steady overnight
Dow Jones Industrial Average futures rose just 19 points Monday night. S&P 500 futures traded just above the flatline along with Nasdaq-100 futures.
Data ahead could sway yields further
Investors will get fresh data Tuesday that could sway Treasury yields further. The September consumer confidence reading is due at 10 a.m. ET, alongside the August jobs opening and labor turnover survey.
Source: US Top News and Analysis
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