The Dow Jones lost 0.13%, above 43,386 points, the S&P 500 It remains flat above 5,868.30 points and the NASDAQ 100 rises 0.13%, above 18,703 points.
Indices are trading mixed after a difficult week for all three major benchmarks, which are now far from the highs seen following Trump’s election victory. ANDl Dow lost 1.2% last week to close at 43,444.99 pointsafter briefly surpassing 44,000 points for the first time. The S&P 500 fell 2.1%, although the index remains near all-time highs and is up 23% this year, some of that enthusiasm has moderated in recent days. The Nasdaq Composite technology index fell 3.2%.
Bonds fall as the market continues to watch the FED
The bets that Some of Trump’s policies could spur a spike in inflation and clouding the outlook for further interest rate cuts contributed to the benchmark U.S. 10-year yield hitting its highest level in more than five months on Friday, a potentially untimely development for stocks. At this time, the ten-year bond yield continues to rise to 4.456%.
All as concerns about the path of interest rates continue to weigh on investors’ minds, particularly after Federal Reserve Chair Jerome Powell said on Thursday that The central bank is in no “rush” to cut rates given the strong growth of the economy and a strong labor market, which fueled last week’s sell-off. Most investors are now pricing a year-end overnight lending rate in the range of 4.25% to 4.50%, according to CME’s FedWatch tool.
The next big catalyst for the market this week will be NVIDIA, which will release its results this coming Wednesday after the market closes. Traders will be watching the company’s demand guidance for its Blackwell AI chips. Nvidia shares fall more than 2% at the open after The Information reported, citing sources, that the company’s Blackwell chips overheat when connected to each other in servers.
Tesla shares rise 5% at the open after Bloomberg News said Trump’s transition team is working on ways to relax regulation of autonomous vehicles.
Spirit Airlines has filed for bankruptcy protection, it announced Monday, after the pioneer of no-fee travel in the U.S. faced a long streak of quarterly losses, failed merger attempts and looming debt maturities. The airline, known for its bright yellow colors, had been losing money despite strong travel demand, while struggling with higher operating costs.
Spirit’s problems were compounded by the collapse in January of its planned $3.8 billion merger with JetBlue Airways and the impact of the failure of RTX.N’s Pratt & Whitney Geared Turbofan (GTF) engines, which left grounding many of its planes.
Roku shares rise 3.1% at open after Baird upgraded the streaming stock to Outperform from Neutral. After a big drop this year, Baird said investors are “overlooking” the long-term potential and changes in the business environment.
Netflix said Saturday that 60 million households around the world had tuned in to the highly anticipated boxing match between Jake Paul and Mike Tyson, with the event peaking at 65 million streams, according to a statement. Nearly 50 million households tuned in to the co-main event between Irish lightweight champion Katie Taylor and Puerto Rican featherweight champion Amanda Serrano, according to Netflix.
Warner Bros Discovery has reached a settlement in its breach of contract lawsuit against the National Basketball Association (NBA), the Wall Street Journal reported Saturday, citing people familiar with the matter. The deal will keep the media company in business with the league for the next decade, the report said, adding that the deal will be announced early next week.
CVS Health shares rise more than 1.5% following an upgrade by Wells Fargo to overweight from equal weight. The firm believes the downside of aggressive growth initiatives at Aetna, the company’s health insurance segment, has peaked.
Earnings from Palo Alto Neworks and several major retailers, including Walmart, will also be released this week.
Until nowwith 93% of S&P 500 companies reporting results, three-quarters of them have reported a positive EPS surprise and 61% have reported a positive earnings surprise, according to a Friday note from FactSet’s John Butters.
European stock markets are trading with a mixed sign while the euro and oil rebound
On the geopolitical side, the Kremlin stated on Monday that any decision by the United States to allow Ukraine to fire American missiles into Russia would mean its direct involvement in the conflict, which it accused President Joe Biden’s administration of escalating. Russia has been telling the West for months how it would interpret such a decision, and that it would increase the risk of a confrontation with the US-led NATO alliance.
This, together with concerns about demand in China, is causing oil prices to rise. Brent oil futures are up 1%, at $72.17 a barrel, while US West Texas Intermediate futures are trading at $68 a barrel, up another 1.7%.
In this environment, European stock markets are trading with a mixed sign. He DAX 0.3% is left, up to 19,123.55 points, the FT-100 adds 0.10%, over 8,075 points, the CAC 40 gives up 0.3%, over 7,243 points and the Eurostoxx 50 It is trading with drops of 0.6%, up to 4,762 points.
The Euro Dollar rebounds and the community currency is exchanged for 1.0566 dollars.
In the field of cryptocurrencies, Bitcoin continues to add up and today it rises 0.8% and reaches $91,784. Meanwhile, Ethereum falls slightly to 3,119.