Investing.com– U.S. stocks fell on Monday, pressured by a rise in Treasury yields following last week's spectacular jobs report.
At 12:54 ET (16:54 GMT), it fell 227 points, or 0.5%, fell 0.4%, and fell 0.4%.
Fed comments, CPI inflation on the horizon
Treasury yields rose, putting stocks on the defensive after a much better-than-expected September jobs report dimmed hopes for another huge rate cut at the Federal Reserve's November meeting.
“The rebound in job growth puts the FOMC on a path of 25 basis point cuts for now,” Goldman Sachs said in a recent note.
A number of Federal Reserve officials will speak in the coming days and offer clues on monetary policy following data showing a
Members of the rate-setting committee will speak later Monday, as it stands.
September's stronger jobs report cooled fears about a recession, although it also hit jobs with a huge cut.
Wednesday's target date is likely to provide more clues on rate cuts. The Federal Reserve had cut rates by 50 basis points during the meeting, marking the start of an easing cycle.
Inflation data for September will also be released later this week and is likely to influence expectations for the path of US interest rates.
Banks will begin the third quarter earnings season
Third-quarter earnings season begins this week, with major banks JPMorgan Chase (NYSE:), Wells Fargo (NYSE and Bank of New York Mellon (NYSE ) will report their quarterly earnings on Friday.
Markets will be watching to assess whether corporate earnings persevere in the face of pressure from high interest rates and sticky inflation.
Bullish investors hope the results justify increasingly higher valuations in the stock market. The S&P 500 is up 20% so far this year and is trading near all-time highs despite recent volatility driven by rising geopolitical tensions in the Middle East.
Pfizer increases in activist action; Hershey falls after UBS downgrade
Shares of Pfizer (NYSE rose 2.4% after Bloomberg reported that activist investor Starboard Value has taken a stake of around $1 billion in the pharmaceutical giant, seeking to drive a turnaround at the company in difficulties.
Hershey Co. (NYSE:) falls 2% after UBS downgraded the stock to neutral from market performance on fears inflation is likely to continue to erode margins.
amazon.com (NASDAQ:) fell more than 3% after Wells Fargo downgraded the e-commerce giant to equal weight from overweight due to concerns about growing competition from Walmart (NYSE:).
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