Stocks Edge Down Ahead Of Key Inflation Reports, Crude Hits 5-Month High, Bitcoin Sinks: What’s Driving Markets Monday?

Traders adopted a cautious approach on Monday as they awaited two critical inflation reports due later this week, seeking clarity on Federal Reserve interest rate policy.

Additionally, the kickoff of earnings season, led by major banks on Wednesday, added to the market’s subdued tone.

The S&P 500 and Nasdaq 100 edged lower, continuing Friday’s downturn sparked by unexpectedly strong jobs data. The lack of “buy-the-dip” enthusiasm in the tech-heavy indices signaled lingering uncertainty among investors.

In contrast, the Dow Jones Industrial Average eked out a gain, buoyed by a rally in energy stocks. Rising oil prices provided a key lift, as West Texas Intermediate (WTI) crude oil surged over 3% to approach $78 per barrel — a level last seen in mid-August 2024. The spike followed U.S. sanctions on Russian crude exports announced on Friday, which shifted market expectations around supply and demand.

Treasury yields extended their ascent, with the 10-year yield climbing to 4.79% and the 30-year yield rising to 4.97%, reflecting heightened expectations for tighter monetary policy. Bank of America Securities launched …

Full story available on Benzinga.com