By Steve Goldstein
U.S. stock indexes declined Monday morning, with the information technology sector once again facing the brunt of the session’s early drop, as the benchmark 10-year Treasury yield rose to 1.8%, with worries about Federal Reserve policy reverberating in financial markets.
On Friday, the Dow finished nearly unchanged, but the S&P 500 fell 0.4% and the tech-heavy Nasdaq Composite lost 1%. According to FactSet, growth stocks underperformed value stocks last week by the most since election week 2020.
What’s driving markets
Stocks extended a recent retreat on Monday, with the Nasdaq Composite trading near its lowest level since mid October, FactSet data show.
Analysts continue to discuss Friday’s payrolls report, which despite a worse-than-forecast reading on nonfarm payrolls did show a decline in the unemployment rate to a pandemic low and a rise in wages.
Read: Jekyll-and-Hyde U.S. jobs report not as ugly as it looks
Economists at Goldman Sachs now expect four Federal Reserve rate increases in 2022, instead of their previous call for three, and say a runoff in the balance sheet will commence in July instead of December. “Declining labor market slack has made Fed officials more sensitive to upside inflation risks and less sensitive to downside growth risks,” they said in a note to clients.
The eagerly awaited inflation report is due on Wednesday.
Which companies are in focus?
How are other assets faring?
(END) Dow Jones Newswires
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