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By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average fell 35 points, or 0.1%, the S&P 500 fell 0.6%, and the NASDAQ Composite fell 0.8%.
Growth sectors of the market including tech stocks took a breather from their recent climb as Treasury yields started the week on the front foot as investors question recent bets on sooner rather later rate cuts ahead of key economic data this week.
“The US jobs report next Friday will be the highlight of the week, with the University of Michigan data also in focus,” Deutsche Bank said in a note on Monday, estimating the economy produced 130,000 in November, with the unemployment rate unchanged at 3.9%.
The yield on the 10-year Treasury rose 4 basis points to 4.266%, with some suggesting the recent plunge in yields on Fed cut bets has been too much too fast. “[T]he market has moved too quickly towards pricing a more balanced environment that we expect will come only slowly,” {{0|Goldman Sachs said in a recent note.
Big tech stumbled, paced by a decline in Alphabet Inc Class A (NASDAQ:GOOGL) and Apple Inc (NASDAQ:AAPL), with the latter also weighed by concerns about iPhone production disruptions.
Apple is reportedly facing iPhone supply disruptions in India as suppliers Foxconn and Pegatron stopped iPhone production at facilities near Chennai, India owing to adverse weather Reuters reported Monday, citing sources.
Meta Platforms Inc (NASDAQ:META), meanwhile, fell more than 1% after CEO Mark Zuckerberg sold 680,000 of his shares in the company in November, according to a US Securities and Exchange Commission filing.
Spotify Technology SA (NYSE:SPOT) rose more 7% after detailing plans to cut 1,500 jobs, or about 17% of its workforce as music streaming company looks to trim costs amid a challenging economic backdrop.
“I decided that a substantial action to rightsize our costs was the best option to accomplish our objectives,” Spotify CEO Daniel Ek said, pointing to the gap between the company’s financial goals and its current operational costs.
Virgin Galactic (NYSE:SPCE) fell 18% after Richard Branson told the Financial Times that he had no plans to plough further money in the space travel company.
In corporate news, Alaska Air (NYSE:ALK) stock fell 14% after the carrier agreed to acquire rival Hawaiian Holdings (NASDAQ:HA) for $1.9 billion, with the acquisition anticipated to close within the next 12 to 18 months.
Ford (NYSE:F) stock rose 1% after the auto giant posted a 0.5% drop in U.S. sales for November, following the impact from production disruptions owing to lengthy workers’ strike, though the automaker also posted strong sales of its hybrid vehicles.
Hybrid vehicle sales rose 75.2% to 12,108 units.
Crypto-related stocks including Coinbase Global (NASDAQ:COIN), MicroStrategy Incorporated (NASDAQ:MSTR), and Riot Platforms (NASDAQ:RIOT) rallied sharply after bitcoin crossed $40,000 for the first time this year. The latest move higher comes amid ongoing optimism that a spot-bitcoin exchange traded fund is likely to be approved by U.S. regulators.
Bitcoin (BitfinexUSD) topped $42,000 before paring some gains.
(Peter Nurse, Oliver Gray contributed to this item.)
