U.S. stocks fell on Monday as a continuous rise in bond yields dented the appetite for risk assets, particularly growth technology stocks.
The Dow Jones Industrials did make headway, however, grabbing 19.32 points to 31,513.69.
The S&P 500 dropped 20.84 points to 3,885.87,
The NASDAQ Composite retreated 226.19 points, or 1.6%, to 13,648.27.
Tesla shares lost 3% following a 4% decline last week. Big Tech stocks came under pressure as Apple, Amazon, Microsoft, Netflix and Alphabet all traded at least 1% lower.
All eyes will be on Federal Reserve Chairman Jerome Powell, who delivers his semi-annual testimony on the economy before the Senate Banking Committee on Tuesday. His comments on rates and inflation could determine the market direction for the week.
On Monday, European Central Bank President Christine Lagarde said in a speech that the central bank is “closely monitoring the evolution of long-term nominal bond yields.” European sovereign bonds yields moved lower in response to her remarks.
The market is headed into the final week of February with solid gains. The Dow and the S&P 500 have risen more than 5% this month, while the NASDAQ has climbed 6.2%.
Airline stocks rebounded after Deutsche Bank upgraded several of the shares. American Airlines jumped more than 7%.
On the pandemic front, the White House said that it expects to ship out millions of delayed coronavirus vaccine doses this week after a sweeping winter storm disrupted logistics. Gov. Andrew Cuomo said on Sunday that a New York resident has tested positive for the COVID-19 variant first identified in South Africa.
Some equity investors grew concerned about rapidly rising Treasury yields in recent weeks as they could especially hurt high-growth companies reliant on easy borrowing while diminishing the relative appeal of stocks.
Prices for 10-Year Treasurys lost some ground, raising yields to 1.35% from Friday’s 1.34%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.78 to $61.02 U.S. a barrel.
Gold prices raced ahead $33.00 to $1,810.40