Monday witnessed a subdued trading session on Wall Street, characterized by minimal movement in major indices, as investors exercised caution ahead of significant events, including the release of the highly anticipated inflation report and the Federal Reserve meeting scheduled for Wednesday.
Initially, U.S. stocks experienced early session losses, prompted by increased volatility in Europe following the latest Parliamentary elections and Emmanuel Macron’s unexpected call for snap elections in France. These developments fueled uncertainty about the political landscape in Europe, prompting traders to adopt a cautious stance.
However, as the trading session progressed, U.S. stocks managed to reverse their losses, with the S&P 500 edging up by 0.2% and the Nasdaq 100 slightly outperforming the broader market with a 0.3% rise. Blue-chip stocks softened by 0.1%, while small caps traded mostly flat throughout the day, reflecting the mixed sentiment prevailing among investors.
Treasury yields inched higher by approximately 3 basis points across long-dated maturities, with the benchmark 10-year Note trading at a 4.47% yield. This uptick in yields contributed to a decline of 0.7% in the iShares 20+ Year Treasury Bond ETF, marking its third consecutive session of declines.
In the currency markets, the U.S. dollar strengthened by 0.2% against a trade-weighted basket of currencies, buoyed by gains against the euro. The euro steadied around $1.0768 after hitting a one-month low overnight at $1.0733. This decline in the euro was attributed to the U.S. jobs report and political uncertainty in Europe.
Commodities exhibited strength across the spectrum, with oil and natural gas prices rallying by 2.5% and 3.7%, respectively. This drove the outperformance of energy-related stocks. Additionally, metals such as copper, silver, and gold experienced gains of 2.2%, 1.7%, and 0.7%, respectively, while Bitcoin rose by 0.4% to reach $69,950.
Major U.S. indices and ETFs displayed mixed performance, with the Nasdaq 100 rising by 0.3% and the S&P 500 edging up by 0.2%. The Russell 2000 edged up by 0.1%, while the Dow Jones Industrial Average experienced a slight decline of 0.1%.
Sector-wise, the Energy Select Sector SPDR Fund outperformed, rising by 1.1%, driven by the rally in oil and natural gas prices. In contrast, the Financials Select Sector SPDR Fund eased by 0.5%, reflecting weakness in the financial sector.
Among industries, the SPDR S&P Oil & Gas Exploration and Production ETF emerged as the session’s top performer, climbing by 2.2%. However, the SPDR S&P Regional Banking ETF lagged behind, falling by 1.7%.
In terms of individual stock movements, Southwest Airlines Co. surged by nearly 8% after Elliot Investment unveiled a $1.9 billion stake in the airline company. Conversely, Huntington Bancshares Inc. tumbled by over 5% following the company’s downward revision of its annual net interest income forecasts.
Texas Pacific Land Corp. and RB Global Inc. soared by over 23% and 9%, respectively, upon news of their inclusion in the S&P MidCap 400 Index. Additionally, CrowdStrike Holdings Inc., KKR & Co. Inc., and GoDaddy Inc. experienced notable gains following their inclusion in the S&P 500 index.
Tellurian Inc. continued its upward trajectory, surging by 13.5% amid rumors of discussions with Saudi giant Aramco for a liquefied natural gas project. Conversely, GameStop Corp. extended losses following Roaring Kitty’s livestream, declining by an additional 15%, while AMC Entertainment Inc. experienced a 6% decline.
In other news, shares of ICC Holdings, Inc. surged by over 35% after Mutual Capital Group announced plans to acquire the company.
Overall, the market remained cautious ahead of significant economic events and geopolitical developments, with investors closely monitoring key indicators and news headlines for insights into future market trends and opportunities.