Stocks Retreat as Bond Yields Jump on Reduced Rate-Cut Expectations

The S&P 500 Index ($SPX) (SPY) Monday closed down by -0.96%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down by -0.94%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -1.17%.

Stocks on Monday retreated, with the Dow Jones Industrials falling to a 2-1/2 week low.  Reduced expectations of Fed rate cuts pushed bond yields higher Monday and undercut stocks. The 10-year T-note yield climbed to a 2-month high Monday on bearish carryover from last Friday when the stronger-than-expected US Sep payroll report eliminated the market odds for a -50 bp rate cut by the Fed at next month’s FOMC meeting.