At the beginning of the week, the U.S. stock market attempts to reverse its four-day losing streak, with major indices for large-cap stocks showing gains at midday trading in New York.
Value stocks continue to outperform growth stocks, as the ratio between Vanguard Value ETF (NYSE:VTV) and Vanguard Growth ETF (NYSE:VUG) reaches its highest level since mid-June.
Meanwhile, Treasury yields, especially in longer maturities, resume their climb, with the 10-year and 30-year yields increasing by 6 basis points to 4.10% and 4.27%, respectively.
Recent Federal Reserve speakers have given contradictory messages, while the expected auction sizes for this month are weighing on Treasuries.
Key points from Monday’s trading:
– The S&P 500 Index rose by 0.6%, while the Dow Jones Industrial Average gained 350 points or 1%.
– The Nasdaq 100 index increased by 0.3%, while the Russell 2000 weakened by 0.2%.
Monday’s performance of major US equity ETFs: The SPDR S&P 500 ETF Trust (NYSE:SPY) was up 0.6% at $449.61, the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) increased by 0.96% to $354.03, and the Invesco QQQ Trust (NASDAQ:QQQ) rose by 0.4% to $373.61, according to Benzinga Pro data.
All US equity sectors traded higher, except for the Technology Select Sector SPDR Fund (NYSE:XLK), which decreased by 0.1%. The Financial Select Sector SPDR Fund (NYSE:XLF) was the top performer of the day, up 1.4%, followed by the Communication Services Select Sector SPDR Fund (NYSE:XLC), up 1.3%.
Some notable stocks from Monday’s session:
– Berkshire Hathaway, Inc.’s (NYSE:BRK) Class B shares reached new all-time highs, rising over 4%, following the release of the company’s quarterly results.
– Moderna Inc. (NASDAQ:MRNA) was the worst performer of the day in both the S&P 500 and Nasdaq 100, falling by 8% and on track for its sixth consecutive day of losses.
– Booking Holdings Inc. (NYSE:BKNG) increased by 4.7% following several price target upgrades from analysts.
In commodities, bonds, and other global equity markets:
– Crude oil weakened by 0.4%, with WTI-grade crude trading at $82 per barrel. The United States Oil Fund ETF (NYSE:USO) was down 0.2% to $73.
– Treasury yields continued to rise, with the 10-year yield up 6 basis points to 4.10% and the two-year yield up 6 basis points to 4.28%. The iShares 20+ Year Treasury Bond ETF (NYSE:TLT) declined by 0.8%.
– The U.S. dollar slightly gained, with the U.S. dollar index, tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), up 0.1%. The EUR/USD pair, tracked by the Invesco CurrecyShares Euro Currency Trust (NYSE:FXE), decreased by 0.1% to 1.10.
– European equity indexes closed higher, with the SPDR DJ Euro STOXX 50 ETF (NYSE:FEZ) rising by 1%.
– Gold fell by 0.4% to $1,934 per ounce. The SPDR Gold Trust (NYSE:GLD) decreased by 0.3% to $179. Silver dropped by 2.1% to $23.12, with the iShares Silver Trust (NYSE:SLV) down 2% to $21.22. Bitcoin (CRYPTO: BTC) declined by 0.3% to $28,931.
This report was updated by staff writer Piero Cingari midday on Monday.