US Markets on Monday: Key Factors Dragging Wall Street

US markets on Wall Street ended lower on Monday, marking a challenging start to the week as multiple factors weighed on market sentiment. The Dow Jones plunged 400 points, closing below the crucial mark of 42,000. The S&P 500 declined by 1%, while the Nasdaq Composite shed 1.2%, finishing below 18,000.

Tech Sector Turmoil

Among the notable declines, Apple saw a deterioration of 2.3% following a downgrade by Jefferies, indicating overly optimistic expectations regarding the newest iPhone. Similarly, Amazon.com faced a 3.1% drop, prompted by a Wells Fargo downgrade. Alphabet shares also fell by 2.4% after a court ruling forced it to lift restrictions on rival marketplace developers.

Oil Prices and Middle East Unease

The resurgence of oil prices also impacted sentiment, with Brent crude surpassing $80 per barrel amid escalating tensions in the Middle East. The rising costs added further strain to investors.

Treasury Yields and Fed Rate Cut Speculations

Benchmark 10-year Treasury yields rose past 4%, a level not seen since August. In addition, money markets indicate fewer instances of a Fed rate cut anticipated through this year, creating uncertainty among traders. According to Jan Nevruzi, an interest-rate strategist at TD Securities, discussions are now focused on the likelihood of any Fed rate cut at all.