Markets Stumble Amidst Rising Yields: A Pause from Record Highs

The Dow and S&P 500 fell on Monday as rising Treasury yields caused investor caution, ending six weeks of consecutive highs. With 114 S&P 500 companies ready to announce earnings, investors assessed high valuations. Challenges included political uncertainty with the upcoming election and sector variations amid changing yields.

The Dow Jones Industrial Average and S&P 500 both ended lower on Monday, retreating from Friday's record highs after six straight weeks of gains. This downturn coincided with rising Treasury yields as investors expressed caution over high stock valuations ahead of major earnings reports.

Monday saw the Dow decrease by 344.31 points, or 0.80%, while the S&P 500 dropped 10.69 points. In contrast, the Nasdaq Composite noted a slight increase due to Nvidia's record-high performance. Meanwhile, rate-sensitive sectors like Real Estate felt the impact of increased yields, shedding value as technology stocks experienced mixed results.

Amidst these market fluctuations, attention shifted towards the upcoming U.S. presidential election. Analysts warned that even minor shifts in poll results could sway market sentiment. Additionally, major earnings reports from companies including Tesla and Coca-Cola kept investors vigilant, as the broader market reflected on stretched valuations and an unpredictable economic landscape.

(With inputs from agencies.)