U.S. stocks closed mixed on Monday, as Wall Street's extended rally took a breather ahead of a pivotal week for earnings reports. The S&P 500 slipped by 0.18%, while the Dow Jones Industrial Average fell over 300 points. The tech-heavy Nasdaq Composite managed a 0.27% gain, supported by Nvidia's record-breaking performance.
- S&P 500: 5,853.98 ⬇️ down 0.18%
- Nasdaq Composite: 18,540.01 ⬆️ up 0.27%
- Dow Jones Industrial Average: 42,931.60 ⬇️ down 0.80%
- STOXX Europe 600: 521.52 ⬇️ down 0.66%
- FTSE 100: 8,318.24 ⬇️ down 0.48%
- CSI 300: 3,935.20 ⬆️ up 0.25%
- SSE Composite: 3,268.11 ⬆️ up 0.20%
- Nikkei 225: 38,954.60 ⬇️ down 0.07%
- Bitcoin: $67,636.35 ⬇️ down 1.93%
U.S.: Market rally pauses amid rising yields and earnings anticipation
U.S. markets saw a mixed close on Monday, with the S&P 500 down 0.18%, coming off a fresh record high last week. The Dow Jones Industrial Average dropped 0.8%, shedding over 300 points. The Nasdaq Composite, however, rose 0.2%, fueled by Nvidia's 4% surge to an all-time high. The 10-year Treasury yield climbed to 4.18%, the highest level since July, putting pressure on rate-sensitive stocks, particularly in real estate and utilities. Investors are closely watching this week's corporate earnings reports, with major names like Tesla and Boeing set to release their results midweek.
Europe: Markets slip slightly on U.S. sentiment
European markets closed lower on Monday, mirroring cautious sentiment from the U.S. The STOXX Europe 600 fell 0.66%, while the FTSE 100 dropped 0.48%. Investor uncertainty surrounding U.S. earnings reports, along with rising Treasury yields, contributed to the broader European decline as markets continued to react to Wall Street's performance. Shares in JDE Peet's surged over 15% after the beverage company announced that Kraft Heinz executive Rafael Oliveira would be its next CEO, and German conglomerate JAB said it would acquire Mondelez's share of the coffee, tea, and hot chocolate brand in a $2.4 billion deal. But it wasn't enough to keep markets in the green.
China: Modest gains in real estate following rate cut
China’s mainland markets posted slight gains as a central bank lending rate cut gave a boost to real estate stocks. The CSI 300 index added 0.25%, helped by a 1% gain in property shares. However, the broader market response was tepid as investors continued to wait for more concrete details on potential government stimulus.
Japan: Nikkei declines as financials drag on market
The Nikkei 225 index in Japan edged lower by 0.07%, with tech stocks like Keyence and Advantest posting gains of 1.66% and 2.67%, respectively, but unable to lift the broader market. Losses in the financial and industrial sectors offset the strength in tech as investors prepared for the Oct. 27 elections, which could impact the ruling Liberal Democratic Party's hold on power, adding a layer of uncertainty to the economic outlook.
