U.S. stocks stumbled through an uncertain session on Monday, as Wall Street continues to struggle with worries about the Federal Reserve and the banking sector. The major averages eventually finished the day mixed, with only fractional moves in the broader market.
The Nasdaq Composite (COMP.IND) closed +0.2%, the S&P 500 (SP500) finished fractionally higher and the Dow (DJI) ended -0.2%.
“After a failed attempt to break past the 4,100 to 4,150 resistance zone last week, S&P500 (SPX) ended flat in today’s session after bouncing up and down within this narrow range throughout the day,” market expert Ahan Vashi told Seeking Alpha. “While we are through the bulk of the Q1 earnings season, Mr. Market is still looking undecided on a direction.”
Vashi added: “The upcoming inflation report could lead to a resolution out of this tight trading range this week. Considering the persistent tightness in the labor markets, inflation is likely to remain stickier than expected, and we could get a negative surprise on Wednesday. … I think investors should remain cautious on equity markets.”
Investors keyed in on the Senior Loan Officer Opinion Survey, or SLOOS, which was released during the afternoon. Previously an afterthought on Wall Street, this data has become increasingly important in the wake of the banking crisis earlier in the year.
In the report, survey respondents noted tighter credit and weaker business loan demand in the first quarter. These conditions applied to both commercial and industrial loans and commercial real estate loans.
Looking at the fixed income market, Treasury yields were higher on Monday. The 10-year yield (US10Y) rose 7 basis points to 3.52% and the more rate-sensitive 2-year yield (US2Y) climbed 9 basis points to 4.01%.
Earnings news continued to drive certain individual stocks. Tyson Foods (TSN) suffered a notable setback in the wake of its quarterly report. Shares of the protein producer plunged 16% after the company posted a surprise loss and lowered its sales guidance.
More on Markets: