Traders adopted a cautious approach on Monday as they awaited two critical inflation reports due later this week, seeking clarity on Federal Reserve interest rate policy.

Additionally, the kickoff of earnings season, led by major banks on Wednesday, added to the market’s subdued tone.

The S&P 500 and Nasdaq 100 edged lower, continuing Friday’s downturn sparked by unexpectedly strong jobs data. The lack of “buy-the-dip” enthusiasm in the tech-heavy indices signaled lingering uncertainty among investors.

In contrast, the Dow Jones Industrial Average eked out a gain, buoyed by a rally in energy stocks. Rising oil prices provided a key lift, as West Texas Intermediate (WTI) crude oil surged over 3% to approach $78 per barrel — a level last seen in mid-August 2024. The spike followed U.S. sanctions on Russian crude exports announced on Friday, which shifted market expectations around supply and demand.

Treasury yields extended their ascent, with the 10-year yield climbing to 4.79% and the 30-year yield rising to 4.97%, reflecting heightened expectations for tighter monetary policy. Bank of America Securities launched a bombshell indicating rising risks towards a rate hike as the next Fed move.

Commodity markets saw mixed action. Gold endured its sharpest daily loss in nearly a month, falling more than 1% as rising yields weighed on the precious metal. Meanwhile, copper staged a modest rebound, gaining 0.8% after a 0.5% decline last Friday.

Cryptocurrencies faced renewed volatility, with Bitcoin BTC/USD plunging 3% to dip below $92,000, briefly touching a two-month low. The ripple effects extended to crypto-linked equities: MicroStrategy Inc. MSTR slid more than 3%, while Coinbase Global Inc. COIN dropped nearly 4%.

Monday’s Performance In Major U.S. Indices, ETFs

Major Indices	Price	1-day chg. %
Dow Jones	42,144.04	0.5%
S&P 500	5,822.92	-0.1%
Russell 2000	2,183.39	-0.2%
Nasdaq 100	20,739.92	-0.5%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY inched 0.1% lower to $579.98.
• The SPDR Dow Jones Industrial Average DIA rose 0.7% to $422.03.
• The tech-heavy Invesco QQQ Trust Series QQQ fell 0.6% to $504.44.
• The iShares Russell 2000 ETF IWM dipped 0.3% to $216.19.
• The Energy Select Sector SPDR Fund XLE outperformed, up 2.3%; the Technology Select Sector SPDR Fund XLK lagged, down 1.1%.

Monday’s Stock Movers

• Major oil & gas giants rallying on Monday include Valero Energy Corp. VLO, up 5%, Baker Hughes Co. BKR up 3.9%, and Marathon Petroleum Corp. MPC up 3.5%.
• Health insurance companies surged after a government proposal suggested increased payments for Medicare Advantage plans in 2026, lifting sentiment across the sector.
• Shares of Humana Inc. HUM rose 7.8%, CVS Health Corp. CVS followed closely with a 6.9% jump, while UnitedHealth Group Inc. UNH saw a 4.8% increase.+
• NVIDIA Corp. NVDA dropped 2.7% to $132.19 as the AI chipmaker urged President-elect Donald Trump to oppose Biden administration regulations on AI technology. Meanwhile, HSBC cut its price target from $195 to $185 but reaffirmed its Buy rating.
• Moderna Inc. MRNA plummeted 20% after projecting 2025 revenue of $1.5 billion to $2.5 billion, missing analysts’ estimates of $2.92 billion. The company also announced it would fast-track its cost-cutting measures.
• Edison International EIX fell 12% as authorities investigated whether equipment from its subsidiary, Southern California Edison, played a role in sparking the Hurst fire in Los Angeles.

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Photo: Ryan DeBerardinis via Shutterstock