Stocks Open Lower as Bond Yields Edge Higher

US stock indexes fell, led by losses in technology shares, as investors shunned both government bonds and equities on worries that further interest-rate increases and China’s Covid-19 policies would weigh on growth.

The S&P 500 declined 1.5%, setting major indexes up for another day of losses. The technology-focused Nasdaq Composite Index fell 1.8% while the Dow Jones Industrial Average receded 1.3%.

investors have largely pulled back from both stocks and bonds after the Federal Reserve approved a half-percentage point increase in its benchmark lending rate last week. The move, part of the central bank’s efforts to contain elevated inflation, has left money managers uncertain about how much more the Fed may tighten in its quest to control prices.

Federal Reserve Chairman Jerome Powell said Wednesday the central bank approved a half-percentage-point interest-rate increase in an effort to reduce inflation that is running at a four-decade high. Photo: Win McNamee/Getty Images

That financial tightening has added to fears of a slowdown in global growth. China’s implementation of lockdowns and other measures to contain the spread of Covid-19 and Russia’s war against Ukraine have bolstered concerns of supply-chain disruptions and reduced consumer spending.

“The US equity market is quite expensive, particularly technology stocks, the market doesn’t know how high the Fed has to go to control inflation and we have the sense of a global slowdown,” said Sebastien Galy, a macro strategist at Nordea Asset Management. “There’s a lot of negatives that are happening in the market.”

US government bonds sold off again, pushing the yield on the benchmark 10-year Treasury note to 3.133% on Monday from 3.124% on Friday. That put it on course to settle at a fresh multiyear high. The 10-year yield had risen 1.6 percentage points since the end of 2021 through Friday, leading some investors to reassess the valuations of technology and growth stocks. Bond yields rise when prices fall.

The Cboe Volatility Index—Wall Street’s so-called fear gauge, also known as the VIX—rose to 32.96.

“The market volatility shows that there is great uncertainty about where people think we are headed,” said Peter Andersen, founder of Boston-based investment firm Andersen Capital Management.

The prospect of further interest-rate increases to combat inflation has worried some investors that such measures will slow economic growth.

Those fears have led some money managers to hold the dollar, seen as a safer investment in times of volatility, due to its status as the world’s reserve currency. the WSJ Dollar Indexwhich measures the US currency against a basket of 16 others, edged up 0.2% Monday.

Shares of cryptocurrency companies fell Monday alongside bitcoin. crypto-exchange


shares fell 9.9%, while bitcoin mining company

Marathon Digital Holdings

shares declined 7.1%.

Shares of

Tyson Foods

rose 2.1% after it reported quarterly profit and revenue that beat analysts’ expectations.

Overseas, the pan-continental Stoxx Europe 600 fell 1.7%, led by declines in the travel and leisure and technology sectors.

In Asia, Japan’s Nikkei 225 dropped 2.5% on Monday, while Australia’s S&P/ASX 200 fell 1.2%.

A woman passed an electronic display in Tokyo on Monday.


Eugene Hoshiko/Associated Press

China’s CSI 300 index, tracking the largest companies listed in Shanghai or Shenzhen, declined 0.8%. Hong Kong markets were closed for a public holiday.

In commodities, Brent-crude futures prices fell 1.5% to $110.74 a barrel. Elevated oil prices since the start of Russia’s war against Ukraine have begun to moderate as traders worry that lockdowns to contain the spread of Covid-19 in China will sap global demand.

the price of bitcoin tumbled through the weekend and traded at $32,801 Monday, down about 10% from Friday’s 5 pm ET level. The popular cryptocurrency has lost more than a quarter of its value in the year to date period.

Write to Caitlin Ostroff at and Serena Ng at

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