By Yasin Ebrahim
Investing.com -- The S&P 500 cut losses Monday amid dip-buying in tech stocks, though an ongoing climb in Treasury yields kept the rebound in check ahead of the Federal Reserve’s interest rate decision due later this week.
The S&P 500 fell 0.1%, theDow Jones Industrial Average slipped 0.1%, or 29 points, and the Nasdaq was down 0.1%.
Tech moved off session lows after falling more than 2% as the 10-year Treasury yield jumped to an 11-year high on expectations for the Fed to deliver a 75-basis-point hike on Wednesday and signal that further tightening will be required to rein in inflation.
“We expect the FOMC to raise rates by 75bps […] and deliver an unambiguously hawkish message. Anyone hoping for a Fed pivot is likely to be disappointed,” Jefferies said in a recent note.
Big tech recovered some losses as dip buyers bought the weakness helping Facebook (NASDAQ:META) and Apple (NASDAQ:AAPL) to turn positive.
Industrials also played a role in supporting the broader market, led by airline stocks as investors cheered signs that the recovery in higher-margin corporate travel is nearing pre-pandemic levels.
Corporate booking volume for the week ended Sept. 11 was just 17.5% below pre-pandemic levels, according to data from Bank of America.
American Airlines (NASDAQ:AAL), Alaska Air Group (NYSE:ALK) and United Airlines Holdings (NASDAQ:UAL) were more than 3% higher.
Rising bank stocks helped pushed the broader financial sector higher as a rising interest rate environment is expected to bolster the net interest margin for banks.
Energy cut the bulk of its losses as oil prices turned positive as easing COVID lockdowns in China stoked hopes about a rebound in energy demand at a time when many are worried about the impact of slowing global growth.
On the earnings front, AutoZone (NYSE:AZO) fell 2% despite reporting quarterly results that topped Wall Street estimates, driven by strong performance in its commercial business.
Crypto-related stocks were on the back foot as Bitcoin fell below $19,000 to its lowest level since 2020, before paring some losses.
Coinbase Global Inc (NASDAQ:COIN), and MicroStrategy Incorporated (NASDAQ:MSTR) were down more than 8% and 3%, respectively.
In other news, Take-Two Interactive Software (NASDAQ:TTWO) cut losses after confirming reports that a hacker released gameplay from its upcoming Grand Theft Auto IV game, though the video game maker said the hack wasn't expected to impair the game's development.