US stock indices declined on Monday as Treasury yields jumped amid fading optimism over big interest rate cut from the Federal Reserve in November and escalating Middle East tensions
In the bond market, the yield on the 10-year Treasury rose to 4.01 per cent from 3.97 per cent late on Friday. The yield on the 2-year Treasury rose to 3.98 per cent from 3.92 per cent.
As of 9:35 am Eastern time, the S&P 500 was 0.3 per cent lower, the Dow Jones Industrial Average was down 0.3 per cent, and the Nasdaq Composite was down 0.3 per cent
At the open, the Dow Jones Industrial Average dropped 63.2 points, or 0.15 percent, to 42,289.51. The S&P 500 slid 13.3 points (0.23 percent) to 5,737.8, while the Nasdaq Composite fell 57.7 points (0.32 percent) to 18,080.115.
Investors will keenly watch the September Consumer Price Index report, which is due on Thursday, for signs on the Fed’s future monetary policy moves. The third quarter earnings season begins this week, with several large banks expected to report on October 11, and will also be under focus.
Chevron’s stock increased 1.1% after it announced a $6.5 billion sale of Canadian assets to Canadian Natural Resources Limited. Pfizer stock jumped 3.1% following reports that activist investor Starboard Value had acquired a roughly $1 billion stake in the company.
Crude oil
Oil prices extended gains on Monday, with Brent nearing $80 on fears of a wider Middle East conflict and potential disruption to supplies.
Brent crude futures rose $1.09, or 1.4 per cent, to $79.14 a barrel by 1316 GMT. US West Texas Intermediate (WTI) crude futures were up $1.15, or 1.55 per cent, at $75.53
Bullion
Gold prices fell on Monday as the US dollar rose.Spot gold fell 0.3 per cent to $2,645.00 per ounce by 09:55 am ET (1355 GMT). US gold futures eased 0.1 per cent to $2,664.70.