U.S. stocks mixed as rate hike worries linger, Russia tension simmers
Wall Street was mixed on Monday, with the Nasdaq Composite Index rising slightly while the Dow Jones Industrial Average fell. Investors were concerned about the path of interest rate hikes by the U.S. Federal Reserve, as well as the ongoing political instability in Russia.
The Nasdaq was lifted by gains in technology stocks, particularly chipmakers. The S&P 500 Index showed a more modest gain, while the Dow was pulled down by healthcare and financial stocks.
The Fed is expected to raise the Fed funds target rate by another 25 basis points in July, but the path beyond is less clear. Some investors believe that the Fed may need to raise rates more aggressively in order to combat inflation, while others believe that the economy is already slowing and that the Fed may need to pause its rate hiking cycle.
The aborted mutiny in Russia also weighed on investor sentiment. The mutiny, which was led by members of the Wagner Group, a private military contractor, was an apparent attempt to overthrow Russian President Vladimir Putin. The mutiny was unsuccessful, but it raised concerns about the stability of the Russian government.
In other news, U.S. Treasury yields edged lower as investors grappled with the Fed’s “higher for longer” message. The dollar was slightly lower against a basket of world currencies, while oil prices were little changed.
Overall, the market was mixed on Monday as investors weighed the risks of rising interest rates and political instability in Russia. The direction of the market in the coming days will likely depend on the outcome of the Fed’s meeting in July and the progress of the Russian political crisis.
Key takeaways:
- The Nasdaq Composite Index rose slightly, while the Dow Jones Industrial Average fell.
- Investors were concerned about the path of interest rate hikes by the U.S. Federal Reserve.
- The aborted mutiny in Russia also weighed on investor sentiment.
- Treasury yields edged lower, while the dollar was slightly lower against a basket of world currencies.
- Oil prices were little changed