As of 10:20 AM Eastern, the S&P 500 had fallen 0.4%. The Dow Jones Industrial Average dropped 0.6% to 35,740, and the Nasdaq lost 0.4%.
Losses were caused by a wide variety of retailers that depend on direct consumer spending. Hanesbrands fell 4.7%.
Both travel-related and auto manufacturers also suffered. Carnival lost 5.8% and Ford dropped 3.6%.
Bond yields fell. The 10-year Treasury yield fell to 1.4% from 1.49% on Friday. Banks, who rely on higher yield bonds to charge more lucrative loans interest, were affected by this. Capital One fell 2.5%.
Also, energy and industrial companies moved lower.
The growth of health care companies was impressive. A number of large pharmaceutical companies stood out, including COVID-19 vaccin makers. Pfizer’s stock rose 4.3% after the news that Arena Pharmaceuticals was being bought. Fellow vaccine maker Moderna rose 5.7%.
Harley-Davidson’s stock rose 14.6% after it announced that it would make its electric motorcycle division public via a blank-check company. The enterprise, which has been a part of the motorcycle maker for ten years, is valued at $1.77billion.
Investors will be watching several economic reports and the Federal Reserve this week to gain greater insight into economic growth as 2021 draws to a close, and the world continues to fight to overcome the effects of COVID-19.
Wall Street will receive an inflation update Tuesday from the Labor Department when it releases its Producer Price Index November. This index shows how inflation impacts business costs. This report will be particularly important given the Fed meeting on Tuesday or Wednesday.
The central bank has been quick to announce a plan to reduce bond purchases that have contributed to low interest rates. Investors will pay attention to any statements regarding the timing of this plan and how it might affect benchmark interest rates in 2022.
