From NASDAQ:

Stocks settled moderately lower on Monday, with the S&P 500 down -0.32%, Dow Jones down -0.71%, and Nasdaq 100 down -0.17%. This was due to rising bond yields and hawkish Fed comments against a rate cut. Fed Chair Powell, Minneapolis Fed President Kashkari, and Chicago Fed President Goolsbee all expressed caution on lowering interest rates, impacting market sentiment. The Jan ISM services index rose more than expected, also contributing to losses. Overseas markets settled mixed, and U.S. and European government bond yields moved higher as well.

The Eurozone Dec PPI fell -10.6% y/y, weaker than expected, and the Eurozone Feb Sentix investor confidence index rose +2.9 to a 10-month high of -12.9, stronger than expected. The China Jan Caixin services PMI unexpectedly fell, contributing to market uncertainty. Overseas stock markets settled mixed, with the Euro Stoxx 50 closing up +0.02%, China’s Shanghai Composite Index down -1.02%, and Japan’s Nikkei Stock Index up +0.54%.

In stock movers, Air Products and Chemicals (APD) closed down more than -15% after weaker than expected Q1 adjusted EPS, while Archer-Daniels-Midland (ADM) and Charter Communications (CHTR) also closed down after facing investigations and downgrades. On the other hand, Estee Lauder (EL) closed up more than +12% after announcing a restructuring plan. Overall, the markets are anticipating the March FOMC meeting with a reduced risk of a rate cut, with T-notes extending their losses and compounded by bearish supply pressures.

Bond yields have been on the rise, influenced by hawkish Fed comments and stronger-than-expected economic data. The Jan ISM services prices paid sub-index rose unexpectedly to the fastest pace in 11 months, indicating rising price pressures in the service sector. Additionally, T-notes are facing bearish supply pressures with multiple corporate bond offerings and Treasury’s February refunding auctions this week. Market sentiment is cautious.

In a positive note, Novo Holdings has agreed to buy Catalent for $16.5 billion, and other companies like ON Semiconductor, Catalent, and IDXX Laboratories reported stronger earnings and corporate developments. However, sellers dominated in the stock market with companies like Air Products and Chemicals (APD), Archer-Daniels-Midland (ADM), and Charter Communications (CHTR) facing difficulties. Although the market remains uncertain, some companies are experiencing growth and positive developments.



Read more: Stocks Finish Lower as Rate Cut Hopes Recede on Hawkish Fed