Dow Drops, NASDAQ Recovers

The Dow Jones Industrial Average declined on Monday as surging interest rates and foreign currency turmoil pressured markets.

The 30-stock index kept on its negative trend, losing 113.84 points to 29,475.57.

The S&P 500 recovered 5.71 points, from its 2022 closing low, posted on Friday to 3,698.94.

The NASDAQ Composite regained 113.14 points, or 1%, to 10,981.07.

Consumer discretionary strengthened 1.3%, and information technology climbed 0.8%, to give support to stocks. Casino stocks led outperformance. Wynn Resorts jumped 12.4%, and Las Vegas Sands was 11% higher. Tech stocks Enphase Energy and Salesforce rose 2.3% and 1.9%.

The British pound dropped to a record low on Monday against the U.S. dollar. Sterling at one point fell 4% to an all-time low of $1.0382. The Federal Reserve’s aggressive hiking campaign, coupled with U.K.’s tax cuts announced last week has caused the U.S. dollar to surge.

The euro hit the lowest versus the dollar since 2002. A surging greenback can hurt the profits of U.S. multinationals and also wreak havoc on global trade, with so much of it transacted in dollars.

Treasury prices sagged, bringing yields up to 3.77% from Friday’s 3.70%. Treasury prices and yields move in opposite direction.

Oil prices pointed upward 90 cents to $79.64 U.S. a barrel.

Gold prices lost $4.20 to $1,651.40 U.S. an ounce.