The major indexes on Monday failed to hold on to last week’s gains as investors kept searching for a market bottom and awaited data coming later in the week that could give them a clearer signal of peaking inflation. Stocks wavered over the flat line for a good chunk of the day before falling lower in the afternoon.
Tech and consumer stocks tumbled as the 10-year U.S. Treasury yield ticked higher. Gaming names Electronic Arts and Take-Two Interactive each slid more than 3%. Etsy was the top decliner in the S&P 500, down nearly 3.6%. Shares of the e-commerce company fell after a downgrade from Needham. |
Meanwhile, energy stocks, which have been the big gainers all year, were the winners on Monday. Valero and Devon posted the biggest upward moves in the S&P 500, rising 8% and nearly 7.5% each. The sector as a whole gained about 2.8%.
Investors are expecting stocks to continue oscillating until there’s a clear catalyst for meaningful moves in either direction. Inflation is still the hot topic, and analysts agree any signal that it has peaked could jolt the market.
Elsewhere, pending home sales posted a surprise 0.7% increase in May from April, the National Association of Realtors reported Monday, likely due to a brief pullback in mortgage rates. |
