NEW YORK: Wall Street stocks were mixed early Monday as worries about elevated Treasury bond yields offset relief at a congressional deal that averted an immediate US government shutdown.
The lofty state of bond yields amid predictions that inflation will be persistent has dampened enthusiasm for stocks, said Maris Ogg of Tower Bridge Advisors.
“Everybody’s obsessing,” Ogg said, describing a “wait-and-see” attitude towards stocks as markets await the Federal Reserve’s response to recent developments.
Treasury bond yields are seen as a proxy for US interest rates, with the yield on the 10-year US Treasury a focal point for investors.
About 15 minutes into trading, the Dow Jones Industrial Average was down 0.2 percent at 33,444.60.
The broad-based S&P 500 was flat at 4,289.03, while the tech-rich Nasdaq Composite Index gained 0.5 percent to 13,287.27.
The 11th hour deal by Congress late Saturday to avoid a US government shutdown, while welcome, “only keeps the government running until November 17,” said Briefing.com analyst Patrick O’Hare.
This means the deadlock surrounding funding has not been “settled” although it has been deferred, he added.
O’Hare noted that the compromise also could lead to the ouster of House Speaker Kevin McCarthy, adding to overall political uncertainty.
This week’s calendar includes the September employment report and updates on the manufacturing and services sectors.