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Stocks- Wall Street Struggles Amid Bond Yield Concern

Published 02/05/2018, 10:28 AM
© Reuters.  Wall Street struggled to gain ground after the opening bell.
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Investing.com – Wall Street was mixed on Monday as concern over the rise of bond yields lingered.

The S&P 500 was flat at 2,762.25 as of 10:25 AM ET (15:25 GMT) while the Dow composite decreased 29 points or 0.12% to 26,491.43, and tech heavy NASDAQ Composite was up 33 points or 0.47% to 7,274.70.

Markets closed in the negative on Friday after a strong jobs report showed that wages grew at their fastest pace in more than eight and a half years, fueling inflation concerns. The Labor Department reported the U.S. economy had added 200,000 jobs in January, beating a consensus of 180,000, while wages grew by 2.9 percent on an annualized basis.

Bond yields rose after the report, as investors grow concerned that inflation will rise and the Federal Reserve will interest rates more than expected next year. The benchmark 10-year Treasury yield rose to 2.855% while the 30-year Treasury bond surged to 3.116%.

Bond yields rise when prices fall.

Bank and technology stocks were among the worst performers after the morning bell. Wells Fargo (NYSE:WFC) slumped 7.79% after the Federal Reserve issued a growth cap on the firm until it submits a plan to overhaul its corporate governance. Bank of America (NYSE:BAC) fell 1.35% while Tesla Inc (NASDAQ:TSLA) was down 0.72% and Google’s Alphabet (NASDAQ:GOOGL) dipped 1.81%.

Meanwhile semiconductor Advanced Micro Devices (NASDAQ:AMD) decreased 4.02% and General Electric (NYSE:GE) inched down 0.80%.

Elsewhere Apple (NASDAQ:AAPL) rose 1.50%, while social media site Twitter Inc (NYSE:TWTR) gained 1.23% and PayPal Holdings Inc (NASDAQ:PYPL) increased 1.44%.

In Europe stocks were down. In Germany the DAX fell 55 points or 0.44% while France’s CAC 40 decreased 56 points or 1.05% and in London the FTSE 100 lost 85 points or 1.15%. Meanwhile Spain’s IBEX 35 fell 113 point or 1.11% and the pan-European Euro Stoxx 50 inched down 30 points or 0.86%.

In commodities, gold futures were up 0.01% to $1,337.50 a troy ounce while crude oil futures fell 0.87% to $64.88 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, gained 0.33% to 89.33.

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