The Dow Jones Industrial Average (DJI) experienced a significant drop of around 400 points, or 0.9%, on Monday. This decline follows a record high achieved at the end of the previous week.
2. Tech Stocks Lead Nasdaq Lower
Major technology companies led the decline in the Nasdaq Composite, with the index dropping close to 1.2%. Among the 'Magnificent 7' tech stocks, Nvidia (NVDA) was the sole gainer, rising nearly 3%.
3. 10-Year Treasury Yield Tops 4%
The 10-year Treasury yield surpassed 4% for the first time since August, contributing to the overall market downturn. This rise in interest rates has significant implications for the stock market and economic outlook.
4. Oil Prices Surge Amid Global Tensions
Oil futures surged by more than 5% on Monday, driven by the largest weekly increase in over a year. This rise is attributed to the potential implications of Israel's anticipated response to Iran's recent missile assault, which may include targeting Iranian oil fields.
5. Insurance Stocks Decline Amid Hurricane Threat
Insurance stocks, including Travelers (TRV) and Allstate (ALL), faced declines as Hurricane Milton intensified to Category 5, threatening the Gulf of Mexico and moving toward Florida. Universal Insurance (UVE), based in Florida, saw its shares drop over 18%.
6. Federal Reserve Interest Rate Expectations Shift
Expectations for a significant interest rate cut from the Federal Reserve have diminished following a stronger-than-expected jobs report for September. Traders now estimate an 88% likelihood of a 0.25% adjustment, as indicated by the CME FedWatch Tool.
7. Google Faces Competition Mandate
Google (GOOG, GOOGL) shares fell more than 2% after a judge mandated that the company must allow more competition in its Google Play app store. This ruling is a result of a 2020 lawsuit alleging that Google hindered competition through its distribution and payment controls within the app store.
