Wall Street today: US stocks decline as Treasury yields jump amid fading optimism over Fed rate cut

US stock indices declined on Monday as Treasury yields jumped amid fading optimism over big interest rate cut from the Federal Reserve in November and escalating Middle East tensions.

In the bond market, the yield on the 10-year Treasury rose to 4.01 per cent from 3.97 per cent late on Friday. The yield on the 2-year Treasury rose to 3.98 per cent from 3.92 per cent.

As of 9:35 am Eastern time, the S&P 500 was 0.3 per cent lower, the Dow Jones Industrial Average was down 0.3 per cent, and the Nasdaq Composite was down 0.3 per cent.

At the open, the Dow Jones Industrial Average fell 63.2 points, or 0.15 per cent, to 42,289.51. The S&P 500 fell 13.3 points, or 0.23 per cent, to 5,737.8, while the Nasdaq Composite dropped 57.7 points, or 0.32 per cent, to 18,080.115.

For clues on the Fed’s next plans on monetary policy, investors will closely watch Consumer Price Index report for September due on Thursday.

Third quarter earnings season begining this week, with several major banks slated to report on October 11, will also remain in focus.

Chevron stock rose 1.1 per cent as it announced a $6.5 billion sale of Canadian assets to Canadian Natural Resources Limited.

Pfizer stock rose 3.1 per cent after a report that activist investor Starboard Value has taken a roughly $1 billion stake in the drugmaker.

Crude oil

Oil prices extended gains on Monday, with Brent nearing $80 on fears of a wider Middle East conflict and potential disruption to supplies.

Brent crude futures rose $1.09, or 1.4 per cent, to $79.14 a barrel by 1316 GMT. US West Texas Intermediate (WTI) crude futures were up $1.15, or 1.55 per cent, at $75.53.

Bullion

Gold prices fell on Monday as the US dollar rose.

Spot gold fell 0.3 per cent to $2,645.00 per ounce by 09:55 am ET (1355 GMT). US gold futures eased 0.1 per cent to $2,664.70.

Spot silver fell 1.3 per cent to $31.75.