- US stocks fell as the tech sector sell-off accelerated, with Nasdaq 100 down nearly 5% from its peak.
- Rising interest rates over the past month have weighed down on stock prices.
- Boeing stock dropped over 3% after a plane crash in South Korea over the weekend.
US stocks declined on Monday as the tech sector’s sell-off accelerated into year-end.
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The Nasdaq 100 extended its mid-December decline to nearly 5% amid a rise in bond yields, while the S&P 500 has dropped by about 3% over the same time period. Mega-cap tech shares including Nvidia, Amazon, Meta, and Alphabet were all lower, adding to Friday’s losses for the tech sector.
Yields edged lower on Monday, with the 10-year Treasury yield down six basis points to 4.559%. However, the yield is up sharply since earlier in the month when it was hovering around 4.1%.
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According to Fairlead Strategies founder Katie Stockton, the recent weakness in the stock market has flashed a technical “sell” signal.
“The SPX posted a modest gain during the shortened week, but out intermediate-term indicators logged ‘sell signals nonetheless, including the weekly stochastic and MACD,” Stockton said, referring to two momentum-based technical indicators.
Stockton said the sell signals increase the probability of a stock market correction in January.
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A slide in Boeing shares weighed on the Dow Jones Industrial Average on Monday, with the stock down down more than 4% after a Boeing 737-800 plane crashed in South Korea on Sunday, killing 179 people onboard.
For economic data this week, investors will watch the release of the S&P Case-Shiller home price index on Tuesday morning, followed by initial jobless claims on Thursday and ISM manufacturing data on Friday.
It’s a shortened holiday trading week, with the stock and bond markets closed on Wednesday for New Year’s Day.
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Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:
Here’s what else is going on:
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In commodities, bonds, and crypto:
- West Texas Intermediate crude oil jumped 0.95% to $71.27 a barrel. Brent crude, the international benchmark, was higher by 0.66% to $74.28 a barrel.
- Gold was lower by 0.20% to $2,626.60 an ounce.
- The 10-year Treasury yield dropped six basis points to 4.559%.
- Bitcoin declined 0.81% to $92,810.