Stocks Edge Higher As Dollar Takes Breather, Tesla And Automakers Decline: What's Driving Markets Monday?

It’s a quiet start to the week for the U.S. stock market, with investors eagerly anticipating the crucial Federal Reserve interest rate decision scheduled for Wednesday.

While major indices are showing little movement, there are slight gains overall, as the recent bullish momentum of the U.S. dollar appears to be taking a breather.

Tesla faced a setback, dropping over 2% in response to Goldman Sachs lowering its earnings forecasts for the electric vehicle giant in 2023 and 2024. Meanwhile, major U.S. automakers, including Ford Motor Co. F, General Motors Co. GM and Stellantis N.V. STLA , experienced weaker trading as the United Auto Workers strike entered its fourth day without a resolution.

Cues From Monday’s Trading:

The S&P 500 Index moved 0.3% higher after falling as much as 1.2% on Friday.

The Dow Jones Industrial mimicked the broader market move, while the Nasdaq 100 inched 0.4% higher after heavier losses last Friday.

The Russell dipped 0.4%.

US Indices Performance on Monday

Monday’s Trading In Major US Equity ETFs

• The SPDR S&P 500 ETF Trust SPY was 0.3% higher to $444.80.
• The SPDR Dow Jones Industrial Average ETF DIA rose 0.2% to $346.92.
• The Invesco QQQ Trust QQQ gained 0.21% to $371.59, according to Benzinga Pro data.

Looking at S&P 500 sectors:

• The Technology Select Sector SPDR Fund XLK led gains, up 0.6% for the day.
• The Real Estate Select Sector SPDR Fund XLRE was the laggard, down 1.2%.

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Stocks In Focus:

• Apple, Inc. AAPL rose about 2% in premarket trading as analysts suggest preorders for its high-end iPhones, especially the pricier iPhone 15 Pro Max, have been strong.
• Moderna Inc. MRNA tumbled 7.6%, marking the worst performance in the S&P 500 and Nasdaq 100 today, in response to a less optimistic vaccination demand outlook than initially expected.
• Wayfair Inc. W tumbled 8% after Loop Capital reduced its price target on the stock from $65 to $60.
• Stitch Fix, Inc. SFIX is scheduled to release its quarterly results after the market close.
• PTC Therapeutics, Inc. PTCT fell about 9% after Raymond James double downgraded the stock to Underperform.

Commodities, Bonds, Other Global Equity Markets:

Crude oil held flat for the day, with a barrel of WTI-grade crude trading at $90. The United States Oil Fund ETF USO was 0.1% lower to $81.21.  

Treasury yields were stable, with the 10-year yield at 4.32% and the two-year yield up by 2 basis points to 5.06%. The iShares 20+ Year Treasury Bond ETF TLT was 0.5% lower for the day. 

The dollar fell, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF UUP, down 0.2%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust FXE, was 0.3% higher to 1.0690.

European equity indices had a negative session. The SPDR DJ Euro STOXX 50 ETF  FEZ fell 0.8%. 

Gold edged 0.4% up to $1,930/oz, while silver rose 0.7% to $23.20. Bitcoin BTC/USD was 2.8% higher to $27,267.

Staff writer Piero Cingari updated this report midday Monday. 

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