U.S. equities finished mixed to begin the week, putting the skids on last week’s sharp rally that came courtesy of Friday’s favorable labor report, eased geopolitical concerns and tamer global trade uneasiness. Market participants appeared to tread with some caution ahead of a host of inflation reports slated for this week, beginning with tomorrow’s consumer price data. Treasury yields were lower, as was the U.S. dollar, while crude oil and gold prices also lost ground.

The Dow Jones Industrial Average (DJIA) fell 157 points (0.6%) to 25,178, the S&P 500 Index declined 4 points (0.1%) to 2,783, and the NASDAQ Composite rose 28 points (0.4%) to 7,588. In moderately heavy volume, 798 million shares were traded on the NYSE and 2.3 billion shares changed hands on the NASDAQ. WTI crude oil lost $0.68 to $61.36 per barrel and wholesale gasoline shed $0.01 to $1.89 per gallon. Elsewhere, the Bloomberg gold spot price was $1.02 lower at $1,322.91 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—fell 0.2% to 89.89.

Treasuries were higher as the economic calendar was void of any major releases today, as the yield on the 2-year note ticked 1 basis point lower to 2.26%, while the yields on the 10-year note and the 30-year bond fell 3 basis points to 2.87% and 3.13%, respectively.

Bond yields remain elevated and the U.S. dollar subdued, while the stock markets are coming off a sharp rally last week. The moves come on the heels of Friday’s February labor report that showed stronger-than-expected job growth but subdued wage gains to bolster the economic backdrop and keep inflation concerns in check. The markets are also grappling with, eased geopolitical concerns as North Korea and the U.S. are expected to hold talks and the exacerbated global trade concerns after last week’s tariff implementation by President Donald Trump, though it appeared to be a bit softer than what was originally feared.

Schwab Center for Financial Research – Market Analysis Group

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