Stock indexes closed lower on Monday with the S&P 500 down by -0.53%, the Dow Jones down by -0.90%, and the Nasdaq down by -0.36%. Bitcoin fell over -5% to a 1-week low. Energy producers saw gains, with WTI crude up over 1%. US economic news was bearish, with ISM manufacturing index falling unexpectedly.

Bond yields rose as Japanese bonds hit a 17-year high and Bank of Japan suggested a rate hike. Chinese economic news was weaker than expected. Bitcoin fell due to China’s warning on virtual currencies. Market focus this week on US economic reports, with another -25 bp rate cut expected at the next FOMC meeting.

Q3 earnings reports exceeded expectations, with a +14.6% increase. Overseas markets were mixed, with Euro Stoxx 50 down -0.01%, Shanghai Composite up +0.65%, and Nikkei down -1.89%. Interest rates rose, with 10-year T-note yield at 4.094%. European government bond yields also climbed.

Eurozone manufacturing PMI contracted at the steepest pace in 5 months. ECB member suggested interest rates are appropriate. US stock movers included cryptocurrency-exposed stocks falling and casino stocks rising. Energy producers like Diamondback Energy and Devon Energy saw gains.

Stocks like Sionna Therapeutics and Moderna faced declines. Joby Aviation, Shopify, and Coupang also closed lower. Leggett & Platt saw a jump after a buyout proposal. Synopsys rose after an investment from Nvidia. Old Dominion Freight Line and Chime Financial also had gains.

Walt Disney led gains in the Dow Jones after a successful movie opening in China. Earnings reports for 12/2 include Crowdstrike Holdings, Gitlab Inc, Marvell Technology, Okta Inc, and Pure Storage Inc. The author did not hold positions in mentioned securities. For more information, refer to Barchart’s Disclosure Policy.

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