US open: Stocks open lower amid rising bond yields
By Iain Gilbert
Date: Monday 04 Oct 2021
(Sharecast News) - Wall Street stocks were in the red at the open on Monday as the first full week of Q4 trading started off with losses amid a rotation out of tech stocks and rising bond yields.
As of 1530 BST, the Dow Jones Industrial Average was down 0.67% at 34,097.99, while the S&P 500 was 1.03% weaker at 4,312.01 and the Nasdaq Composite came out the gate 1.86% softer at 14,295.65.
The Dow Jones opened 228.47 points lower on Monday, taking a bite out of solid gains recorded on the first day of trading for the final quarter of 2021.
Heading into the fourth and final quarter, concerns regarding central bank tightening, the US debt ceiling, Chinese real estate developer Evergrande and the ongoing Covid-19 pandemic were all still firmly on investors' minds.
US-China tariffs were also back in the spotlight after Beijing failed to live up to promises made as part of the pair's phase one trade deal, while OPEC was also in focus amid fears that a spike in energy prices would pressure on the cartel into driving output higher.
On the macro front, new orders for US-made goods picked up during August, indicating sustained strength in the manufacturing sector despite economic growth appearing to have decelerated in the third quarter due to shortages of raw materials and labour. According to the Commerce Department, factory orders grew 1.2% in August after rising 0.7% in July, ahead of forecasts for a 1.0% uptick in factory orders.
In the corporate space, pharmaceutical company Merck published promising data around a drug candidate that holds the potential to be administered orally and reduce patients' chances of contracting the coronavirus.
Tech stocks such as Apple, Nvidia, Amazon and Microsoft traded lower at the open as the yield on the benchmark 10-year Treasury note traded at around 1.5%, while social media behemoth Facebook was down as much as 3% after a whistleblower accused it of a "betrayal of democracy" over the weekend.
Tesla bucked the trend, trading 3% higher after reporting that it had delivered 241,300 electric vehicles during the third quarter, far and above analysts' estimates.
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