(Bloomberg) — U.S. stocks fluctuated, though another rise in Treasury yields weighed on tech-heavy equity indexes. The dollar strengthened as investors focused on the potential for a rebound in the global economy.
The S&P 500 edged lower, though remained well above the worst of overnight selling. Tech stocks continued to struggle as investors rotated into companies whose fortunes are more closely tied to the business cycle. Tesla Inc. fell for a fifth day. Ten-year Treasury yields pushed back toward 1.6%.
Brent crude traded near $70 a barrel after Saudi Arabia said the world’s largest crude terminal was attacked on Sunday by a drone from the sea. The missiles were intercepted and oil output appeared to be unaffected.
“You will see a lot of volatility in markets,” Kim Stafford, Asia Pacific head at Pacific Investment Management Co., said on Bloomberg Television. “We believe that confidence is improving, especially with vaccines coming online, so we will see an uptick in growth globally. There are a lot of reasons to be confident in the market, but a lot of this is also priced in.”
Global markets have become preoccupied by the risks associated with rising Treasury yields and fears that government aid programs could overheat economic growth. President Joe Biden’s $1.9 trillion stimulus package is widely expected to pass through the House when lawmakers take up the bill on Tuesday.
There are also questions about whether equity valuations have become excessive, especially in speculative tech shares. The Nasdaq 100 Index has fallen about 8% since early February.
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Meanwhile, China’s main stock benchmark entered a correction on Monday on concerns about liquidity conditions and valuations in some of the recently favored stocks. The CSI 300 Index fell 3.5%, piercing through its 100-day moving average and putting losses from its recent February 10 peak to 13%.
In Europe, banks and travel shares lifted regional benchmarks. Germany’s DAX Index added 1.4% after the government announced plans to speed up its vaccination campaign.
General Electric Co. gained 3% in premarket trading. The company is nearing an agreement to combine its jet-leasing business with Ireland’s AerCap Holdings NV, said people familiar with the matter, in a potential deal that would join the world’s two biggest aircraft financiers.
Here are some key events to watch:
The annual session of China’s National People’s Congress continues in Beijing.Japan GDP is due Tuesday.EIA crude oil inventory report is due WednesdayThe U.S. February consumer price index will offer the latest look at price pressures Wednesday.The European Central Bank holds its monetary policy meeting and President Christine Lagarde is set to do a briefing Thursday.
These are some of the main moves in markets:
Stocks
The S&P 500 added 0.2% as of 9:31 a.m. in New York.The Stoxx Europe 600 Index increased 1.3%.The MSCI Asia Pacific Index fell 1.2%.The MSCI Emerging Market Index decreased 1.7%.
Currencies
The Bloomberg Dollar Spot Index jumped 0.4%.The euro fell 0.3% to $1.1873.The British pound was flat at $1.3845.The Japanese yen weakened 0.4% to 108.72 per dollar.
Bonds
The yield on 10-year Treasuries added one basis point to 1.58%.The yield on two-year Treasuries gained one basis point to 0.15%.Germany’s 10-year yield rose one basis point to -0.29%.
Commodities
West Texas Intermediate crude fell 0.6% to $65.68 a barrel.Gold futures weakened 0.5% to $1,690.50 an ounce.
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