US stocks trade mixed as bond yields ease, investors wait on earnings

• US stocks traded mixed as investors digested the latest moves in the Treasury market.
• After surging above 5% early Monday, the 10-year US yield dipped 8 basis points to trade around 4.84%.

US stocks traded mixed Monday as investors assessed intraday swings in the bond market and braced for a wave of incoming corporate earnings.

After briefly topping 5% early Monday morning, the yield on the 10-year US Treasury fell to around 4.84% in the afternoon. That decline allowed stocks to regain some footing.

Still, investors remain concerned over the prospect of higher-for-longer interest rates in the economy, which have pushed bond yields steadily higher throughout 2023. Investors are pricing in a 97% chance interest rates will stay above 4% by the end of 2024, according to the CME FedWatch tool, which could influence bond yields to remain elevated as well.

Meanwhile, about 40% of all S&P 500 firms are set to report their results for the past quarter this week. That includes popular mega-cap tech stocks like Alphabet, Microsoft, and Amazon, which have benefited enormously this year amid Wall Street's excitement for AI.

Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:

• S&P 500: 4,217.04, down 0.17%

• Dow Jones Industrial Average: 32,936.41, down 0.58% (190.87 points)

• Nasdaq Composite: 13,018.33, up 0.27%

Here's what else happened today:

• Billionaire investor Bill Ackman says he's no longer betting against US Treasurys, as there's too much risk around the world.
• Here's the impact soaring bond yields have had on American consumers.
• Homebuyers are backing out of purchases at the highest rate in a year as high mortgage rates slam the housing market.
• Sky-high mortgage rates could soon push home sales to a three-year low, Goldman Sachs warned.
• The S&P 500 is poised for a 14% rally this year as stocks are flashing signs of being oversold, according to one strategist.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil dipped 2.6% to $85.82 a barrel. Brent crude, the international benchmark, fell 2.28% to $90.06 a barrel.
• Gold slipped 0.26% to $1,976.35 per ounce.
• The 10-year Treasury yield slid 7 basis points to 4.85% on Thursday.
• Bitcoin rose 4.33% to $31,203.63.