Market Swings: S&P 500 Dips, Nasdaq Ends Lower Amid Fed Rate Concerns

The Nasdaq fell while the S&P 500 slightly recovered from recent losses. Economic data pressures persist, affecting equities as investors adjust rate cut expectations. Concerns over inflation continue, with Treasury yields climbing and impacting both bond and stock markets. Energy outperformed as utilities and tech sectors declined.

The stock market experienced a volatile session Monday, with the Nasdaq falling amid concerns about rising interest rates and inflation. The S&P 500, meanwhile, managed a modest gain after touching a two-month low, as investors navigated the complexities of persistently high Treasury yields and expectations of future Federal Reserve decisions.

Recent economic reports have signaled a robust yet pressurized U.S. economy, prompting discussions on inflation and bond yields. President-elect Donald Trump's tariff proposals have heightened inflation concerns, while comments from Federal Reserve officials continue to push yields up. The S&P 500 has faced declines for four of the past five weeks, amid this uncertain landscape.

In the trading realm, 10-year Treasury note yields reached a 14-month peak at 4.805%, with markets anticipating limited rate cuts from the Fed. Meanwhile, the Dow Industrial Average rose, propelled by UnitedHealth Group's climb after proposed changes to Medicare Advantage payments. Despite these sectoral gains, utilities and tech faced notable declines, aggravated by a high-profile lawsuit against Edison International over wildfire blames.

(With inputs from agencies.)