(Reuters) – The New York Stock Exchange ended sharply lower on Monday as concerns over the Middle East and rising bond yields overshadowed strong U.S. retail sales results in March.
The Dow Jones index fell 0.65%, or 248.13 points, to 37,735.11 points.
The broader Standard & Poor’s 500 lost 61.59 points, or 1.20% to 5,061.82 points.
The Nasdaq Composite fell 290.07 points (-1.79%) to 15,885.019.
Wall Street, however, started the session in the green with the greater than expected increase in American retail sales in March and the good results from Goldman Sachs (+2.92%), which reported an increase of 28%. of its profit in the first quarter, the best since the third quarter of 2021, according to LSEG data.
However, the gains faded on concerns that hostilities between Israel and Iran could continue, and Treasury yields climbed, with the 10-year yield reaching its highest level since November.
“We saw a little bit of a rebound this morning because people might have said, ‘OK, it sold out on Friday’ in anticipation of something really bad in the Middle East,” said Ken Polcari, director- partner at Kace Capital Advisors in Boca Raton, Florida.
“All the geopolitical affairs are going to cause tension and anxiety in the market, the realization that rates are not going to fall anytime soon must finally be felt, that’s what the bond market is telling us, that the rates will increase.”
Each of the 11 major sectors in the S&P index was lower, with interest-rate-sensitive real estate and utilities both falling more than 1%.
In terms of values, Apple (-2.19%) was one of the main drags on the S&P 500 after data from research firm IDC showed that the technology giant’s smartphone shipments fell by around 10% in first quarter 2024.
Tesla lost 5.59% after announcing the layoff of more than 10% of its global workforce, according to an internal memo consulted by Reuters.
Salesforce Group fell 7.28% after Reuters reported, citing a source, that the customer relations software maker was in advanced talks to acquire Informatica.
(Written by Chuck Mikolajczak in New York, French version Kate Entringer)
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