Stocks Fall As Treasury Yields, Dollar Rise; Nvidia Hits Record Highs: What’s Driving Markets Monday? – Boeing (NYSE:BA)

U.S. major indices fell on Monday as rising Treasury yields and a strengthening dollar dampened risk sentiment. Investors are reassessing the economic outlook and weighing potential risks tied to the Federal Reserve’s next interest rate moves.

Yields on the 10-year Treasury note surged 9 basis points to 4.18%, reaching their highest level since late July. Meanwhile, 30-year Treasury bond yields climbed to 4.5%. The spike in yields pushed the iShares 20+ Year Treasury Bond ETF TLT down by 1.4%, reflecting renewed pressure on long-duration bonds.

A gauge of the greenback, as tracked by Invesco DB USD Index Bullish Fund ETF UUP, rose 0.5%.

On Monday, Dallas Fed President Lorie Logan hinted that gradual rate cuts are on the cards if the economy meets forecasts. Market-implied expectations for a 25-basis-point rate cut in November dipped slightly from 90% to 85%, according to CME FedWatch.

The CBOE Volatility Index (VIX), commonly known as Wall Street’s “fear gauge,” jumped 5% on Monday, marking its largest surge in two weeks.

The S&P 500 traded 0.5% lower at midday trading in New York, with all its 11 sectors in the red. The Dow Jones Industrial Average shed 0.9%, while the Russell 2000, which tracks small-cap stocks, tumbled 1.7%. Technology stocks experienced minor losses.

Despite the negative session, NVIDIA Corp. NVDA gained over 2%, hitting $141.80 per share and notching fresh all-time highs.

In commodities, gold took a breather after four consecutive sessions of gains, while oil prices rebounded 1.6%, driven by renewed supply concerns. Bitcoin BTC/USD fell sharply, losing 2.8%.

Updated at 12:55 p.m. ET

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY fell 0.3% to $582.24.
• The SPDR Dow Jones Industrial Average DIA fell 0.7% to $429.46.
• The tech-heavy Invesco QQQ Trust Series QQQ eased 0.2% to $493.66.
• The iShares Russell 2000 ETF IWM dipped to $222.12.
• The Communication Services Select Sector SPDR Fund XLC outperformed, up 0.9%. The Energy Select Sector SPDR Fund XLE lagged, down 0.6%.

• Boeing Co. BA surged over 3% after the company reached a preliminary agreement with its employees to end a five-week strike. Adding to the momentum, Emirates SkyCargo placed an order for five additional Boeing 777 freighters.
• Kenvue Inc. KVUE shares jumped 6.5% following reports that activist investor Starboard Value has acquired a substantial stake in the company.
• Cigna Group CI extended its losses on Monday, falling nearly 5% after a 5% decline on Friday, as investors continued to react negatively to reports of a potential merger with Humana Inc HUM. Oppenheimer analysts weighed in on the situation, recommending that Cigna remain independent amid skepticism about the merger’s strategic value and regulatory feasibility.

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