US stock indexes lower pressured by drop in technology

U.S. stock indexes were lower on Monday, pressured by a drop in technology and energy companies and muted appetite for equities after last week's spike in Treasury yields following healthy economic data.

Six of the 11 major S&P sectors were lower as a 0.35 per cent slide in technology stocks led the declines, followed by a 0.24 per cent drop in the energy sector.

The drop in technology stocks was led by a 0.5 per cent fall in Apple and a decline in chipmakers. Micron fell 1 per cent and Nvidia dropped 0.7 per cent.

Members of the so-called FAANG group — Facebook, Amazon, Netflix and Alphabet — were down between 0.24 per cent and 2 per cent.

Energy companies were hurt as crude prices dropped below $83 per barrel on expectations that some Iranian oil exports will keep flowing after the United States reimposes sanctions, easing a strain on supplies.

Yields on the 10-year note were at seven-year highs after a solid jobs report raised the spectre of faster interest rate hikes. The U.S. Treasury market was closed on Monday for the Columbus Day holiday.

"There's a hangover from last week's rapid move in yields and just because the bond market's closed, doesn't mean investors are not worried," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

While U.S. stocks have eased off record highs following last week's drop, there are still concerns about valuations in the pricier names, especially with the corporate earnings season on tap.

At 10:00 a.m. ET the Dow Jones Industrial Average was down 13.43 points, or 0.05 per cent, at 26,433.62, the S&P 500 was down 4.00 points, or 0.14 per cent, at 2,881.57 and the Nasdaq Composite was down 8.35 points, or 0.11 per cent, at 7,780.09.

China's central bank announced a steep cut in the level of cash that banks must hold as reserves on Sunday, stepping up moves to lower financing costs and spur growth amid concerns over economic drag from the Sino-U.S. trade spat.

Casino operators fell after Morgan Stanley cut its gross gaming revenue growth estimates for Macau.

Wynn Resorts fell 1.8 per cent, the most on the S&P, MGM Resorts was down 0.8 per cent and Melco Resorts declined 2.3 per cent.

General Electric climbed 1.6 per cent, the most on the S&P, after Barclays echoed investor optimism over Larry Culp, saying the conglomerate's new chief executive officer will be able to drive more robust restructuring.

Declining issues outnumbered advancers for a 1.49-to-1 ratio on the NYSE and a 1.84-to-1 ratio on the Nasdaq.

The S&P index recorded five new 52-week highs and 19 new lows, while the Nasdaq recorded six new highs and 75 new lows. 

(With inputs from agencies.)