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Persistent weakness in technology stocks led the major indexes lower on Monday after last week’s hotter-than-expected inflation readings sparked a downturn in equity markets.
The Dow Jones Industrials came off its lows of the day, but still finished behind Friday’s finish by 54.34 points to 34,327.79,
The S&P 500 fell 10.56 points to 4,163.29, as the tech sector pulled back 0.7%
The NASDAQ slipped 50.93 points to 13,346.52.
Big Tech came under pressure to start the week, with Apple and Netflix each down 0.9%. Microsoft shed 1.2%, while Tesla dropped more than 2% as famed investor Michael Burry revealed a big short position on the electric carmaker.
Traders have punished the technology sector in recent weeks amid a broader shift out of growth stocks and into cyclical, reopening trades in energy, financials and materials.
Communication services stock Discovery bucked that trend, up big after AT&T announced Monday that it would merge WarnerMedia, which includes HBO, with Discovery. The new entity will trade as its own public company. Discovery’s Class B stock jumped nearly 14%, while AT&T ended the day slightly lower after hitting a record high earlier in the session.
Bitcoin was taken for a wild ride overnight Sunday. Earlier, the price tumbled below $43,000 after Elon Musk implied in a Twitter exchange that Tesla may have dumped its bitcoin holdings. Last week, Tesla said it would no longer accept bitcoin for car purchases due to environmental concerns.
Bitcoin then rebounded some after Musk later clarified in a tweet that the electric vehicle maker "has not sold any Bitcoin." The price was last at $45,505. Tesla stock lost 1.5%.
Elsewhere, the first-quarter earnings season is wrapping up with more than 90% of the S&P 500 companies having reported their results. So far, 86% of S&P 500 companies have reported a positive EPS surprise, which would mark the highest percentage of positive earnings surprises since 2008 when FactSet began tracking this metric.
Walmart, Home Depot and Macy’s will deliver earnings on Tuesday.
Prices for 10-Year Treasurys fell, raising yields to 1.65% from Friday’s 1.63%. Treasury prices and yields move in opposite directions.
Oil prices surged 97 cents to $66.34 U.S. a barrel.
Gold prices gained $28.20 to $1,886.30 U.S. an ounce.
