New York, Oct. 4 (BUS): Stocks fell in morning trading on Monday as Wall Street emerged from its worst week since the winter, the Associated Press reported.
The S&P 500 was down 1.1% as of 10:35 AM ET. The Dow Jones Industrial Average fell 309 points, or 0.9%, to 34.016.
Gains in financial stocks were offset by a decline in technology stocks. Apple shares fell 1.5 percent and Microsoft 1.8 percent. Big telecom companies also fell. Facebook fell 3.1%. Losses in technology stocks sent the Nasdaq down 2.1%.
Bond yields rose. The yield on the 10-year Treasury rose to 1.50% from 1.47% late Friday. Rising bond yields contributed to the recent weakness in technology stocks.
The rapid rise in interest rates has led to a reassessment of whether stocks have grown too expensive, especially for already high-priced tech companies.
Higher bond yields helped bank stocks gain. Banks rely on higher returns to charge more profitable interest on loans. Bank of America rose 2.1%. JPMorgan Chase, one of Dow’s 30 stocks, rose 1.6%.
US crude oil prices rose 2.8% and crossed $77 a barrel for the first time since 2014.
The Organization of the Petroleum Exporting Countries (OPEC) and allied oil producing countries decided on Monday to stick to their cautious approach to restoring intermittent oil production during the pandemic, and agreed to add 400,000 barrels per day in November.
Natural gas prices jumped 7.1%. Energy company prices have risen as energy prices have risen. Devon Energy stock rose 3.9%.
In Asia, Hong Kong’s benchmark index fell more than 2% after shares of troubled real estate developer China Evergrande were suspended.
Investors are preparing for the latest round of corporate earnings, which will increase in the next several weeks.
They also continue to monitor economic data closely for more indications on the pace of recovery as businesses and consumers continue to grapple with the impact of COVID-19 and the highly contagious delta variable.
On Friday, the Labor Department will release its employment report for September. The labor market has been struggling to fully recover from the damage caused by COVID-19 for more than a year.
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