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S&P 500 falls as tech stocks weigh
U.S. stocks fell at the open on Monday as major technology stocks that have led the bull market sold off, while markets awaited fresh economic data that will shape the Fed’s interest rate path.
The S&P 500 lost about 0.6%, the Nasdaq Composite dropped about 1.3%, and the Dow Jones Industrial Average rose 157 points, or 0.4%, as investors shifted to non-tech stocks such as Caterpillar.
In stocks, Palantir and Nvidia, bull market leaders popular with retail investors, each fell about 3% in premarket trading to build on their losses from last week. Nvidia shares are down about 6% for the period, while Palantir is down 11%. Other popular technology stocks including Tesla, Broadcom and Micron are also down in premarket trading.
Rising bond yields were one of the catalysts for the sell-off in growth-oriented stocks, with the 10-year Treasury yield hitting its highest since late 2023 on Monday.
This is a busy week for economic reports and will give investors a clearer picture of the state of the economy after last week’s surprise jobs report sent stocks tumbling.
The stronger-than-expected nonfarm payrolls report raised concerns that the Federal Reserve will ease the pace of rate cuts.
Investors will also be watching the start of the fourth-quarter earnings season, with banks including Citigroup, Goldman Sachs and JPMorgan Chase due to report on Wednesday, and Morgan Stanley and Bank of America on Thursday.
