US stocks end mixed as S&P 500 drops for 5th straight session while Nasdaq edges higher after last week's rout
- The S&P 500 dropped for a 5th straight session on Monday but closed well above session lows.
Nasdaq Compositereversed sharply to finish higher, ending a streak of four straight losses.
Ahead of inflation data this week that could underscore concerns the Federal Reserve will move aggressively to fight hot inflation, the 10-year Treasury yield during the session surpassed 1.8% for the first time since January 2020. That sliced into highly-valued tech stocks early Monday before they recovered some ground.
"Investors are reacting to the heightened reality of a likely four-time interest rate hike this year, as the Fed has messaged its contention that a faster tapering could better address inflationary concerns," said Greg Bassuk, CEO of AXS Investments, in a note to Insider on Monday.
Here's where US indexes stood at 4:00 p.m. on Monday:
- S&P 500: 4,670.29, down 0.14%
- Dow Jones Industrial Average: 36,068.87, down 0.45% (162.79 points)
- Nasdaq Composite: 14,942.83, up 0.05%
Goldman Sachs said Monday it expects the US central bank to raise interest rates by four times in 2022.
The consumer price inflation report due Wednesday could exceed 7% after the CPI reached 6.8% in November, the highest rate since 1982.
"The producer price index (PPI) data will be released on Thursday, and investors remain laser-focused on the extent to which those wholesale prices continued to rise in December," said Bassuk, noting the previous PPI report showed producer prices surged to 9.6% year-on-year.
Bitcoin declined 0.8% to $41,514.36.
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