Dow Recedes After Pushing Into Record Territory

Major U.S. stock indexes slipped on Monday, in a subdued start to the week after closing near record levels last week.

The Dow Jones Industrial Average fell 38 points, or 0.1%, in morning trading. The Dow had briefly pushed into record territory after the opening bell before retreating.

The S&P 500 dropped 0.15%, after the index reached its second-highest close in history on Friday. The technology- heavy Nasdaq Composite declined less than 0.1%.

U.S. stock indexes have been mostly muted in recent trading sessions, with investors assessing a range of factors including the economic outlook, supply-chain problems and high valuations for stocks.

While inflation expectations have eased in recent days, investors remain on edge for signs that Federal Reserve officials may consider pulling back on easy money policies that have supported the rally in equities.

"It almost feels like the market is going to be at a standstill until we get a better clarity on inflation and the growth outlook," said Seema Shah, chief strategist at Principal Global Advisors. "The market hasn't got any major driver to push it significantly higher."

Over the weekend, Treasury Secretary Janet Yellen told Bloomberg News that President Biden's spending plan would be good for the U.S., even if it contributes to rising inflation and results in higher interest rates.

"The market is so focused on [inflation] that anything that is going to give an indication of how strong inflation pressures are going to be is going to be a point of focus," said Ms. Shah. "For Janet Yellen to be talking about the idea of higher rates: it is not shocking, but I do think the market is extremely jumpy."

Rising interest rates and the prospect of higher inflation, which can erode the value of fixed income payouts, has spurred some investors to sell government bonds and buy assets linked to a broad economic recovery. The yield on the 10- year Treasury note rose to 1.574% from 1.559% Friday. Yields rise when prices fall.

In corporate news, shares of QTS Realty Trust jumped 22% after The Wall Street Journal reported that Blackstone Group had struck a roughly $6.7 billion deal to buy the data-center operator and take it private. Blackstone shares gained 1%.

Overseas, the pan-continental Stoxx Europe 600 gained 0.4%.

In Asia, major benchmarks were mixed. The Shanghai Composite Index rose 0.2%. Japan's Nikkei 225 added 0.3%, while Hong Kong's Hang Seng Index declined almost 0.5%.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com

By Caitlin Ostroff and Alexander Osipovich

U.S. stocks slipped on Monday, in a subdued start to the week after closing near record levels last week.

The Dow Jones Industrial Average fell 97 points, or 0.3%, in late-morning trading. The Dow had briefly pushed into record territory after the opening bell before retreating.

The S&P 500 dropped 0.3%, after the index reached its second-highest close in history on Friday. The technology- heavy Nasdaq Composite declined less than 0.1%.

Major U.S. stock indexes have been mostly muted in recent trading sessions, with investors assessing a range of factors including the economic outlook, supply-chain problems and high valuations for stocks.

While inflation expectations have eased in recent days, investors remain on edge for signs that Federal Reserve officials may consider pulling back on easy money policies that have supported a long-time rally in equities.

"It almost feels like the market is going to be at a standstill until we get a better clarity on inflation and the growth outlook," said Seema Shah, chief strategist at Principal Global Advisors. "The market hasn't got any major driver to push it significantly higher."

Over the weekend, Treasury Secretary Janet Yellen told Bloomberg News that President Biden's spending plan would be good for the U.S., even if it contributes to rising inflation and results in higher interest rates.

"The market is so focused on [inflation] that anything that is going to give an indication of how strong inflation pressures are going to be is going to be a point of focus," said Ms. Shah. "For Janet Yellen to be talking about the idea of higher rates: it is not shocking, but I do think the market is extremely jumpy."

The Labor Department is scheduled to release its latest monthly reading of inflation on Thursday, a data point that will be closely watched by investors. So far, the Fed has indicated that it will not tighten monetary policy until there is substantial further progress on post-pandemic economic recovery, but signs of further price increases could change that calculus.

"What the Fed does from a policy perspective will be the biggest driver of where stocks move from here," said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Rising interest rates and the prospect of higher inflation, which can erode the value of fixed income payouts, has spurred some investors to sell government bonds and buy assets linked to a broad economic recovery.

The yield on the 10-year Treasury note inched up to 1.567% from 1.559% Friday. Yields rise when prices fall.

In corporate news, shares of QTS Realty Trust jumped 21% after The Wall Street Journal reported that Blackstone Group had struck a roughly $6.7 billion deal to buy the data-center operator and take it private. Blackstone shares gained 1.2%.

Meme stocks popular among small investors on social media continued their bout of wild volatility. AMC Entertainment climbed 18%, adding to last week's gains of 83%. GameStop was 8.2% in recent trading.

Overseas, the pan-continental Stoxx Europe 600 gained 0.3%.

In Asia, major benchmarks were mixed. The Shanghai Composite Index rose 0.2%. Japan's Nikkei 225 added 0.3%, while Hong Kong's Hang Seng Index declined almost 0.5%.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com and Alexander Osipovich at alexander.osipovich@dowjones.com

By Caitlin Ostroff and Alexander Osipovich

The Dow Jones Industrial Average and the S&P 500 slipped Monday after closing near record levels last week.

The Dow lost 163 points, or 0.5%, in afternoon trading. The blue-chips index had briefly pushed into record territory after the opening bell before retreating.

The S&P 500 dropped 0.3%, after the index reached its second-highest close in history on Friday. The technology- heavy Nasdaq Composite gained 0.2%.

Major U.S. stock indexes have been mostly muted in recent trading sessions, with investors assessing a range of factors including the economic outlook, supply-chain problems and high valuations for stocks. While inflation expectations have eased in recent days, investors remain on edge for signs that Federal Reserve officials may consider pulling back on easy money policies that have supported a long-time rally in equities.

"It almost feels like the market is going to be at a standstill until we get a better clarity on inflation and the growth outlook," said Seema Shah, chief strategist at Principal Global Advisors. "The market hasn't got any major driver to push it significantly higher."

Inflation has jumped recently, worrying some investors, particularly as President Biden has pushed for trillions of dollars of new government spending. Still, Fed officials have said the recent increases are due to transitory factors related to the reopening of the U.S. economy after the Covid-19 pandemic, such as short-term shortages of labor and materials.

The Labor Department is scheduled to release its latest monthly reading of inflation on Thursday, a data point that will be closely watched by investors. So far, the Fed has indicated that it will not tighten monetary policy until there is substantial further progress on the recovery. Signs of further price increases could change that calculus, though.

"What the Fed does from a policy perspective will be the biggest driver of where stocks move from here," said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Rising interest rates and the prospect of higher inflation, which can erode the value of fixed income payouts, has spurred some investors to sell government bonds and buy assets linked to a broad economic recovery. That has helped lift stocks in economically sensitive sectors such as energy and banking, while tech stocks have underperformed in recent months.

In corporate news, shares of drug-maker Biogen soared 43% after the U.S. Food and Drug Administration said it approved the company's treatment for Alzheimer's disease.

Shares of QTS Realty Trust jumped 21% after The Wall Street Journal reported that Blackstone Group had struck a roughly $6.7 billion deal to buy the data-center operator and take it private. Blackstone shares gained 1.8%.

Meme stocks popular among small investors on social media continued their bout of wild volatility. AMC Entertainment climbed 23%, adding to last week's gains of 83%. GameStop was up 12% in recent trading.

In bond markets, the yield on the 10-year Treasury note rose to 1.570% from 1.559% Friday. Yields rise when prices fall.

Overseas, the pan-continental Stoxx Europe 600 ticked up 0.2%.

In Asia, major benchmarks were mixed. The Shanghai Composite Index rose 0.2%. Japan's Nikkei 225 added 0.3%, while Hong Kong's Hang Seng Index declined almost 0.5%.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com and Alexander Osipovich at alexander.osipovich@dowjones.com

By Caitlin Ostroff and Alexander Osipovich

The Dow Jones Industrial Average and the S&P 500 slipped Monday after closing near record levels last week.

The Dow lost 0.4%. The blue-chip index had briefly pushed into record territory after the opening bell before retreating.

The S&P 500 dropped less than 0.1% after the index reached its second-highest close in history on Friday. The technology-heavy Nasdaq Composite gained 0.5%.

Major U.S. stock indexes have been mostly muted in recent trading sessions, with investors assessing a range of factors including the economic outlook, supply-chain problems and high valuations for stocks. While inflation expectations have eased in recent days, investors remain on edge for signs that Federal Reserve officials may consider pulling back on easy-money policies that have supported a longtime rally in equities.

"It almost feels like the market is going to be at a standstill until we get a better clarity on inflation and the growth outlook," said Seema Shah, chief strategist at Principal Global Advisors. "The market hasn't got any major driver to push it significantly higher."

Inflation has jumped recently, worrying some investors, particularly as President Biden has pushed for trillions of dollars of new government spending. Still, Fed officials have said the recent increases are due to transitory factors related to the reopening of the U.S. economy after the Covid-19 pandemic, such as short-term shortages of labor and materials.

The Labor Department is scheduled to release its latest monthly reading of inflation on Thursday, a data point that will be closely watched by investors. So far, the Fed has indicated that it won't tighten monetary policy until there is substantial further progress on the recovery. Signs of further price increases could change that calculus, though.

"What the Fed does from a policy perspective will be the biggest driver of where stocks move from here," said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Rising interest rates and the prospect of higher inflation, which can erode the value of fixed-income payouts, has spurred some investors to sell government bonds and buy assets linked to a broad economic recovery. That has helped lift stocks in economically sensitive sectors such as energy and banking, while tech stocks have underperformed in recent months.

In corporate news, shares of drugmaker Biogen soared 39% after the U.S. Food and Drug Administration said it approved the company's treatment for Alzheimer's disease. Eli Lilly, which also is working on an Alzheimer's drug, advanced 10%.

Shares of QTS Realty Trust jumped 21% after The Wall Street Journal reported that Blackstone Group had struck a roughly $6.7 billion deal to buy the data-center operator and take it private. Blackstone shares slid 0.2%.

Meme stocks popular among small investors on social media continued their bout of wild volatility. AMC Entertainment climbed 15%, adding to last week's gains of 83%. GameStop was up 13%.

In bond markets, the yield on the 10-year Treasury note rose to 1.570% from 1.559% Friday. Yields rise when prices fall.

Overseas, the pan-continental Stoxx Europe 600 ticked up 0.2%.

In Asia, major benchmarks were mixed. The Shanghai Composite Index rose 0.2%. Japan's Nikkei 225 added 0.3%, while Hong Kong's Hang Seng Index declined almost 0.5%.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com and Alexander Osipovich at alexander.osipovich@dowjones.com

By Caitlin Ostroff and Alexander Osipovich

The Dow Jones Industrial Average and the S&P 500 slipped Monday after closing near record levels last week.

The Dow lost 126.15 points, or 0.4%, to close at 34630.24. The blue-chip index briefly advanced into record territory in morning trading before turning lower.

The S&P 500 dropped 3.37, or less than 0.1%, to 4226.52, after the index reached its second-highest close in history on Friday. The technology-heavy Nasdaq Composite rose 67.23, or 0.5%, to 13881.72.

U.S. stock indexes have been mostly muted in recent trading sessions, with investors assessing a range of factors including the economic outlook, supply-chain problems and high valuations for stocks. While inflation expectations have eased in recent days, investors remain on edge for signs that Federal Reserve officials may consider pulling back on easy-money policies that have supported a monthslong rally in equities.

"It almost feels like the market is going to be at a standstill until we get a better clarity on inflation and the growth outlook," said Seema Shah, chief strategist at Principal Global Advisors. "The market hasn't got any major driver to push it significantly higher."

Inflation has jumped recently, worrying some investors, particularly as President Biden has pushed for trillions of dollars of new government spending. Still, Fed officials have said the recent increases are due to transitory factors related to the reopening of the U.S. economy after the Covid-19 pandemic, such as short-term shortages of labor and materials.

The Labor Department is scheduled to release its latest monthly reading of inflation on Thursday, a data point that will be closely watched by investors. So far, the Fed has indicated that it won't tighten monetary policy until there is substantial further progress on the recovery. Signs of further price increases could change that calculus, though.

"What the Fed does from a policy perspective will be the biggest driver of where stocks move from here," said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Rising interest rates and the prospect of higher inflation, which can erode the value of fixed-income payouts, has spurred some investors to sell government bonds and buy assets linked to a broad economic recovery. That has helped lift stocks in economically sensitive sectors such as energy and banking, while tech stocks have underperformed in recent months.

In corporate news, shares of drugmaker Biogen soared $109.71 a share, or 38%, to $395.85 after the U.S. Food and Drug Administration said it approved the company's treatment for Alzheimer's disease. Eli Lilly, which is also working on an Alzheimer's drug, advanced $20.50 per share, or 10%, to $222.52.

Shares of QTS Realty Trust jumped $13.66, or 21%, to $78.15 after The Wall Street Journal reported that Blackstone Group had struck a roughly $6.7 billion deal to buy the data-center operator and take it private. Blackstone shares rose $1.20, or 1.3%, to $94.40.

Meme stocks popular among small investors on social media continued their bout of wild volatility. AMC Entertainment climbed $7.09 per share, or 15%, to $55, adding to last week's gains of 83%. GameStop shares rose $31.65, or 13%, to $280.01.

In bond markets, the yield on the 10-year Treasury note settled at 1.570%, up from 1.559% Friday. Yields rise when prices fall.

Overseas, the pan-continental Stoxx Europe 600 ticked up 0.2%.

In Asia, major benchmarks were mixed. The Shanghai Composite Index rose 0.2%. Japan's Nikkei 225 added 0.3%, while Hong Kong's Hang Seng Index declined almost 0.5%.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com and Alexander Osipovich at alexander.osipovich@dowjones.com


  (END) Dow Jones Newswires
  06-07-21 1024ET
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