TSX Stubs Toes at Open



Stocks fell on Monday after U.S. Federal Reserve Chair Jerome Powell dashed investor hopes for interest rate cuts in the near term and yields pushed higher.

The Dow Jones Industrials tumbled 331.27 points to 38,323.15.

The S&P 500 index fell 24.74 points to 4,933.87.

The NASDAQ index erased 78.48 points to 15,550.48.

“We want to see more evidence that inflation is moving sustainably down to 2%,” Powell said in an interview with “60 Minutes” that aired Sunday. “Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates.”

Those comments echo remarks made by Powell last week, after the Fed’s most recent monetary policy meeting. After the Fed kept interest rates unchanged, Powell said that a rate cut in March was unlikely.

Earnings season stretched on, with McDonald’s shares slipping 3% after posting mixed quarterly results. Caterpillar shares popped more than 2% after posting strong profits. Meanwhile, Boeing slumped 2% on news that it will have to rework 50 undelivered 737 Max airplanes.

Monday’s moves come after the three major averages rose for the 13th week out of 14, powered by a stronger-than-expected January jobs report and solid earnings reports from Microsoft and Meta Platforms.

Prices for the 10-year Treasury plummeted, hiking yields to 4.16% from Friday’s 4.02%. Treasury prices and yields move in opposite directions.

Oil prices ditched 58 cents to $71.70 U.S. a barrel.

Gold prices dropped $20.10 to $2,033.60.

US Market Updates