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Wall Street drifts ahead of a big week that could swing stocks and bonds
AP News • • business
Key Points:
- U.S. stocks showed mixed movement Monday, with the S&P 500 slipping 0.3% and the Dow Jones rising 0.1%, as investors awaited key events later in the week.
- Tech stocks, particularly AI-related companies like Nvidia, declined amid concerns about overvaluation and sustainability of AI chip demand; Nvidia fell 2.3% ahead of its earnings report on Wednesday.
- The U.S. Treasury Department's surprise increase in planned buybacks of long-term Treasurys helped ease 10-year yields slightly to 4.70%, but analysts caution this may have limited impact on underlying debt and inflation issues.
- Oil prices dropped 2.3% to $90.55 per barrel, contributing to the easing of Treasury yields, amid ongoing geopolitical tensions involving the U.S. and Iran.
- Investors are closely watching Federal Reserve Chairman Kevin Warsh’s upcoming speech for signals on inflation and interest rate policy, with high expectations that could influence bond yields and market direction.
