S&P 500 records first deadly cross in 2 years as Nasdaq Composite drops 2% ahead of potential Fed interest rate hike

U.S. stocks ended mostly lower on Monday, with the Nasdaq Composite and S&P 500 indexes producing the firmest decline, as investors weighed in on the 19th day of military hostilities in Ukraine and awaited the start of a crucial rally in the Federal Reserve, with the first rate hike. in about four years expected Wednesday.

The Dow Jones Industrial Average DJIA,
+0.00%
finished almost flat at around 32,945, helped by a rally from American Express Corp. AXP,
+2.91%.

The S&P 500 SPX index,
-0.74%
closed down 0.7% at 4,173, weighed down by declines in SP500.10 Energy,
-2.89%
down 2.9% and Information Technology SP500.45,
-1.90%,
1.9%.

Meanwhile, the tech-rich Nasdaq Composite Index COMP,
-2.04%
fell 2% to end around 12,581.

In terms of interest rates, the 10-year Treasury bond TMUBMUSD10Y,
2.134%
yields of 2.139%, marking the highest yield since June 11, 2019. Debt yields rise as prices fall.

The S&P 500 recorded its first death cross, where the short-term moving average crosses below the long-term average, for the first time since March 2020.

On Wednesday, the Fed is expected to raise its benchmark rate by 25 basis points for the first time since 2018 as authorities seek to rein in runaway inflation, which has been exacerbated by Russia’s offensive in Ukraine.

On top of that, China has put Shenzhen under lockdown as it tries to control the spread of COVID-19.

Comments are closed.