Stocks on the New York Stock Exchange largely recovered on Monday after the benchmark 10-year Treasury yield rose above 5% momentarily before retreating. The Dow Jones Industrial Average slipped below its flatline, while the S&P 500 gained 0.2% and the Nasdaq Composite rose by 0.5%.
The 10-year Treasury yield ended Monday’s session at 4.87%, while the 30-year Treasury yield closed at 5.01%. Despite the minor retreat, bonds remained steep, raising investors’ bets that the Federal Reserve would move to keep interest rates higher for longer. While concerns revolving around the ongoing Middle East conflict have encouraged sell-offs, investors will await the latest round of Big Tech earnings this week to better gauge the economic climate.
Chevron shares rose by 3% in pre-market trading after the company announced its plan to purchase Hess for $53 billion in stock so that it can expand its operations in Guyana. Roivant Sciences stocks surged by 12% after Roche, a bowel drugmaker subsidiary, agreed to purchase Telavant for $7.1 billion.