Stocks fell on Monday while rates surged, with investors trying to recover from last week’s volatile market swings even as experts warn that rising risks to economic growth could lead to further downturns.
The Dow Jones Industrial Average was down over 1.6%, over 500 points, while the S&P 500 lost 2.6% and the tech-heavy Nasdaq Composite 3.4%.
The wider market selloff continued on Monday as stocks struggled to find their footing and added to recent losses after moving lower for the last five weeks in a row.
Rates surged, putting pressure on stocks: The yield on the benchmark ten-year Treasury note jumped to 3.185%, its highest level since November 2018.
Surging government bond yields dragged shares of Big Tech companies lower in particular, with Facebook parent Meta, Amazon, Apple, Netflix and Google parent Alphabet all falling by roughly 2% or more.
Shares of electric vehicle startup Rivian, meanwhile, plunged nearly 20% on Monday after CNBC reported over the weekend that Ford plans to sell 8 million shares (out of roughly 100 million shares owned).
Analysts at Barclays expect markets to “remain volatile” as stagflation risks “continue to increase,” adding that “while we cannot discount sharp bear market rallies, we think upside is limited.”