Stock Market Today: Dow ends higher, but rising Treasury yields keep lid on gains
Investing.com — The Dow closed slightly higher Monday as a resurgence in Treasury yields kept upside momentum in check ahead of remarks from Fed officials and a slew of corporate earnings due this week.
At 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was up 34 points or 0.10%, while the S&P 500 was up 0.20% and the NASDAQ Composite was up 0.3%.
Treasury yields rebounded from the recent selloff, with the yield on the 10-year Treasury rising 11 basis points to 4.664%, as investors looked ahead to a number of Fed speakers this week, including two appearances by Chair Jerome Powell — the second of which on Thursday includes a Q&A session.
Federal Reserve Governor Lisa Cook said on Monday that an expectation of higher for longer interest rates doesn't «appear to be causing the increase in longer-term rates.»
The remarks followed a weaker-than-expected October jobs report on Friday that stoked expectations that the Fed is rate hike cycle is nearing end and shifted focus to potential rate cuts next year.Fed fund futures imply around an 85% chance the Federal Reserve is done with its hiking cycle, and an 80% chance it will start cutting in June.
Regional banks included Zions Bancorporation (NASDAQ:ZION), Comerica Inc (NYSE:CMA), and PacWest Bancorp (NASDAQ:PACW) fell on Monday as bank lending conditions tightened in Q3, slowing demand for loans, the Fed's Q3 senior loan officer survey showed Monday.
The survey resumed concerns somewhat about the health of regional banks following quarterly results from several regional lenders showing rising loan loss provisions and falling deposits.
«High short-term interest rates have driven up interest expense and pressured margins, while higher long-term rates erode asset
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