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U.S. stocks fell on Monday as a continuous rise in bond yields dented the appetite for risk assets, particularly growth technology stocks.
The Dow Jones Industrials retreated 87.94 points to 31,406.38,
The S&P 500 slid 19.2 points to 3,887.51.
The NASDAQ Composite dumped 137.5 points, or 1%, to 13,375.93.
Monday’s move came after the S&P 500 slid 0.7% and the NASDAQ Composite dropped 1.6% last week each snapping two-week win streaks. The blue-chip Dow eked out a 0.1% gain in the same period, supported by Caterpillar and JPMorgan.
The market is headed into the final week of February with solid gains. The Dow and the S&P 500 have risen more than 5% this month, while the NASDAQ has climbed 6.2%.
Airline stocks rebounded after Deutsche Bank upgraded several of the shares. American Airlines jumped more than 7%.
On the pandemic front, the White House said that it expects to ship out millions of delayed coronavirus vaccine doses this week after a sweeping winter storm disrupted logistics. Gov. Andrew Cuomo said on Sunday that a New York resident has tested positive for the COVID-19 variant first identified in South Africa.
Some equity investors grew concerned about rapidly rising Treasury yields in recent weeks as they could especially hurt high-growth companies reliant on easy borrowing while diminishing the relative appeal of stocks.
Tesla shares lost 3% following a 4% decline last week. Big Tech stocks came under pressure as Apple, Amazon, Microsoft, Netflix and Alphabet all traded at least 1% lower.
All eyes will be on Federal Reserve Chairman Jerome Powell, who delivers his semi-annual testimony on the economy before the Senate Banking Committee on Tuesday. His comments on rates and inflation could determine the market direction for the week.
Prices for 10-Year Treasurys lost some ground, raising yields to 1.35% from Friday’s 1.34%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.56 to $60.80 U.S. a barrel.
Gold prices raced ahead $29.30 to $1,806.70
