Major U.S. indices finished mixed on Monday, with the Dow and S&P 500 retreating from last week's record highs as investors look toward key earnings results.
The Dow Jones Industrial Average dropped 344.3 points, or 0.8%, closing at 42,931.6 and ending a three-day winning streak. The S&P 500 slipped 0.2% to 5,854, while the Nasdaq Composite defied the broader trend, gaining 0.3% to finish at 18,540.
Consumer and homebuilder stocks suffered notable losses amid growing concerns over sustained higher interest rates. Target fell 3.8%, Builders FirstSource dropped 5.2%, and Lennar declined 4.4%.
Investors are awaiting a slew of key earnings reports this week, with Tesla, Coca-Cola, and GE Aerospace among the major companies set to announce their results. While optimism remains that equities could climb further, the looming U.S. presidential election and geopolitical tensions have injected caution into the market.
Monday’s pullback followed a strong week for the markets, where both the S&P 500 and Dow hit record highs, marking a six-week winning streak for both indices.
On the bond markets, U.S. Treasury yields surged, with the 10-year yield climbing nearly 12 basis points to 4.196%, while the 2-year yield was at 4.03%.