Benchmark US indices drifted on Monday, January 10, on concerns over sooner than anticipated interest rate hikes, that have pushed the US treasury yields higher. The US treasury yields hit the highest level in two years on Monday.
The S&P 500 was down 0.14% to 4,670.29. The Dow Jones Industrial Average decreased by 0.45% to 36,068.87. The NASDAQ Composite Index rose 0.05% to 14,942.83, and the small-cap Russell 2000 was down 0.70% to 2,164.54.
The increasing yields have indicated that the investors are concerned that the Federal Reserve may raise the short-term interest rates in March while reducing its holdings of bonds and other assets afterward.
The lower rates have helped the tech stocks to rally in the previous year as it made the bonds less attractive while increasing the risk-bet appetite of the traders. Now, the investors are eagerly waiting for the inflation data that is expected to release on Wednesday for clues on Fed's timeline to raise borrowing costs.
The financial has topped the S&P 500 index on Monday, while the healthcare sector traded flat. Nine of the 11 critical sectors of the S&P 500 index stayed in the negative territory, with the technology and consumer discretionary sector as the bottom mover.
The shares of Zynga Inc. (ZNGA) surged 41.25% in intraday trading on Monday, after the video gaming company, Take-Two Interactive Software, Inc. (TTWO) has agreed to acquire Zynga for around US$12.7 billion, or US$9.86 apiece, in a cash and stock deal. However, the TTWO stock plunged over 15%.
The stocks of Tilray, Inc. (TLRY) rose 11.25% on January 10, after the company has reported strong quarterly earnings results. The company said that its revenue jumped 20% YoY to US$155.15 million in Q2, FY22, on increasing demand for cannabis products.
The shares of the athletic apparel retailer, Lululemon Athletica Inc. (LULU) declined 4.40% after the company said that its earnings for the fourth quarter may fall toward the low end of its projected ranges, mainly due to staffing shortages and capacity constraints caused by the Omicron outbreak.
In the financial sector, HSBC Holdings plc (HSBC) increased by 1.74%, Barclays PLC (BCS) gained 1.45%, and KB Financial Group Inc. (KB) rose 2.05%. Shinhan Financial Group Co., Ltd. (SHG) and Banco Santander-Chile (BSAC) surged 1.51% and 1.11%, respectively.
In consumer discretionary stocks, The Home Depot, Inc. (HD) decreased by 1.87%, Nike, Inc. (NKE) fell 4.89%, and Lowe's Companies, Inc. (LOW) declined 2.48%. Starbucks Corporation (SBUX) and Bed Bath & Beyond Inc. (BBBY) plummeted 1.91% and 7.07%, respectively.
In the technology sector, Nvidia Corporation (NVDA) plunged 1.79%, ASML Holding N.V. (ASML) slipped 5.28%, and Broadcom Inc. (AVGO) tumbled 1.10%. Advanced Micro Devices, Inc. (AMD) and ServiceNow, Inc. (NOW) ticked down 2.08% and 1.66%, respectively.
Futures & Commodities
Gold futures were up 0.19% to US$1,800.85 per ounce. Silver increased by 0.37% to US$22.492 per ounce, while copper fell 0.98% to US$4.3667.
Brent oil futures decreased by 0.95% to US$80.97 per barrel and WTI crude was down 0.61% to US$78.42.
The 30-year Treasury bond yields were down 0.55% to 2.104, while the 10-year bond yields rose 0.11% to 1.771.
US Dollar Futures Index increased by 0.24% to US$95.950.