Highlights
Stocks lost ground on Monday in response to rising bond yields and oil prices, and a selloff in the AI momentum trade, though many stocks recovered from the morning’s lows and bond yields later moved lower on the day. The US Treasury 10-year note yield touched 5.0 percent for the first time since 2023 before retreating, and the market generally expects higher rates.
The Dow Jones industrial average eased 0.3 percent while the S&P 500 lost 0.5 percent and the Nasdaq was off 0.6 percent. The dollar index gained slightly.
Reaction to calls from the heads of the major US AI firms to slow down the rate of AI development spooked some investors who saw a slower rollout and lower profits for the AI complex. That kept chipmakers, memory firms and others in the AI space under selling pressure Monday though others in the cyber security space rallied.
Rising bond yields pressured the market as oil prices continued to rise and the market overwhelmingly looks for an interest rate increase from the Federal Reserve this week with more to come later in the year in response to inflation worries.