Stocks fell Monday as Treasury yields spiked higher on concerns that the Federal Reserve may not cut rates as much as expected. Lackluster results from McDonald’s also dampened investor sentiment.
The Dow Jones Industrials tumbled 274.30 points to 38,380.12.
The S&P 500 index fell 15.8 points to 4,942.81, after hitting a record high last week as Big Tech stocks moved higher.
The NASDAQ index 31.28 points to 15,597.68.
“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 falling 3.7% after posting a mixed quarter. The results heightened concerns about earnings from companies outside of the technology behemoths and whether they can deliver the rest of the season.
Elsewhere, Boeing slumped 1.3% on more 737 Max woes. Tesla also dragged the broader market, losing 3.7% as worries over rising competition and persistent pricing pressures for the EV giant lingered.
Prices for the 10-year Treasury blundered, hiking yields to 4.17% from Friday’s 4.02%. Treasury prices and yields move in opposite directions.
Oil prices reawakened 55 cents to $72.81 U.S. a barrel.
Gold prices dropped $12.50 to $2,038.10.
