Traders work the floor of the New York Stock Exchange.
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US stocks closed Monday mixed, with a small gain for the S&P 500.
Equities appeared in a holding pattern until Fed boss Jerome Powell delivers testimony about monetary policy this week.
The 10-year Treasury yield edged higher after pulling back at the end of last week.
Stocks finished mixed Monday and Treasury yields edged higher as investors prepared to hear from Federal Reserve Chairman Jerome Powell on Tuesday.
The S&P 500 eked out a third consecutive advance. Gainers included Apple after Goldman Sachs recommended buying shares of the tech behemoth.
This week will feature Fed boss Powell on Tuesday and Wednesday on Capitol Hill for semi-annual testimony.
Stocks finished mostly higher, but investors have been tracking moves in the bond market for short-term direction, Ross Mayfield, investment strategy analyst at Baird Private Wealth Management, told Insider.
“This is kind of how the market traded last year. It seems we’re back on that path now that the Fed’s terminal rate and what the Fed is going to do is back in the forefront,” he said.
Stocks found some relief Monday and Friday as bond yields backed away from recent highs, including the 10-year Treasury yield moving back under 4%, but yields on Monday were ticking higher again.
“I think we’ll be in a holding pattern until we get that nonfarm payrolls report,” said Mayfield, referring to jobs report due out this Friday. “I don’t expect Powell to diverge from the higher-for-longer messaging and reiterate its commitment to the 2% target,” he said.
“But I do think nonfarm payrolls could be interesting to see if there’s a revision or not to the January number. The whole shift in the tone of markets started at the beginning of February when we got that January nonfarm payrolls number,” Mayfield said. The report for January showed that employers added 517,000 in the month, greatly exceeding economists’ expectations.
Here’s where US indexes stood at the 4:30 ap.m. closing bell on Monday:
S&P 500:4,048.39, up 0.07%Dow Jones Industrial Average: 33,431.44, up 0.12% (40.47 points)Nasdaq Composite: 11,675.74, down 0.11%
In his semi-annual monetary policy report before US lawmakers set to begin Tuesday, investors will watch what Powell will say about interest rates and the Fed’s ongoing fight against inflation, a year after embarking on its aggressive monetary policy program.
Strength in the labor market has also influenced the Fed’s outlook for rates. Investors will receive a key update from that front in Friday’s US unemployment report for February.
Here’s what else is happening today:
Crypto exchange Binance crafted a plan to evade scrutiny by US authorities back in 2019, The Wall Street Journal reported. British chip designer Arm is looking to raise at least $8 billion when it lists on the US stock market later this year. Chinese EV maker BYD, backed by Warren Buffett, has seen $18 billion in value wiped out amid Tesla’s price war.Ken Griffin’s Citadel is extending its winning streak in 2023 after last year’s record gains.
In commodities, bonds, and crypto:
West Texas Intermediate crude turned higher, rising 1.1% to $80.60 per barrel. Brent crude, the international benchmark, rose 0.6% to $86.34. Gold fell 0.1% to $1,852.40 per ounce. The 10-year Treasury yield rose eight basis points to 3.98%.Bitcoin slipped 0.4% to $22,399.10.