Stocks Mixed as Markets Begin to Look Ahead to the Fed Decision…..

U.S. stocks wrapped up a relatively muted session in mixed fashion, as the S&P 500 rode a late-session push to add to last week’s record highs, while the Nasdaq also hit one of its own. Despite a rise in bond yields, Financials came under pressure and kept the major indexes range-bound, while Information Technology and Communications Services issues built on recent strength and finished in the green. A barren economic calendar enabled investors to focus their attention towards tomorrow’s heavy economic agenda and also Wednesday’s monetary policy decision from the Fed, as investors appeared cautious. In light equity news, Novavax said that its COVID vaccine is 90% effective overall against the disease after a late-stage trial. Treasuries traded to the downside amid the higher yields and the U.S. dollar was slightly lower, while gold fell and crude oil prices reversed early gains to end modestly lower. Asia finished higher in a muted session with many markets in the region closed for holidays, while European markets began the week mostly higher to add to a recent rally.

The Dow Jones Industrial Average decreased 86 points (0.3%) to 34,394, the S&P 500 Index rose 8 points (0.2%) to 4,255, and the Nasdaq Composite advanced 105 points (0.7%) to 14,174. In moderate volume, 881 million shares were traded on the NYSE and 4.3 billion shares changed hands on the Nasdaq. WTI crude oil inched $0.03 lower to $70.29 per barrel. Elsewhere, the Bloomberg gold spot price decreased $11.37 to $1,866.16 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was 0.1% lower at 90.49.

Treasuries traded lower amid a dormant economic docket, as the yield on the 2-year note rose 1 basis point (bp) to 0.16%, while the yields on the 10-year note and 30-year bond both increased 4 bps to 1.49% and 2.18%, respectively.

©2021 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.

Schwab Center for Financial Research (“SCFR”) is a division of Charles Schwab & Co., Inc. The information contained herein is obtained from third-party sources and believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. The investment information mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinions are subject to change without notice in reaction to shifting market conditions.