US STOCKS-S&P 500, Nasdaq choppy as higher bond yields weigh

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.) * Tesla gains after Musk says will unveil Robotaxi in August * Crypto stocks rise, tracking higher bitcoin prices * Indexes up: Dow 0.19%, S&P 0.02%, Nasdaq 0.09% (Updated at 9:49 a.m. ET/ 1349 GMT) By Shashwat Chauhan and Shristi Achar A April 8 (Reuters) - The benchmark S&P 500 and the Nasdaq struggled for direction in early trading on Monday after Treasury yields gained on rising bets that the U.S. Federal Reserve could delay interest-rate cuts this year.

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.) *

Tesla gains after Musk says will unveil Robotaxi in August *

Crypto stocks rise, tracking higher bitcoin prices *

Indexes up: Dow 0.19%, S&P 0.02%, Nasdaq 0.09% (Updated at 9:49 a.m. ET/ 1349 GMT)

By Shashwat Chauhan and Shristi Achar A April 8 (Reuters) -

The benchmark S&P 500 and the Nasdaq struggled for direction in early trading on Monday after Treasury yields gained on rising bets that the U.S. Federal Reserve could delay interest-rate cuts this year. Hawkish commentary from central bank officials last week and stronger-than-expected manufacturing and jobs reports pointed to a resilient U.S. economy, easing the pressure on the Fed to cut interest rates quickly.

U.S. stocks recorded weekly losses on Friday as traders scaled back expectations on the timing of rate cuts. They now see an around 51% chance of the Fed announcing its first rate cut in June, according to the CME FedWatch Tool, down from about 58% at the beginning of last week. The market has also pared back expectations of more than three rate cuts this year, from between three and four a few weeks ago, according to LSEG data.

"A lot of people are trying to be overly optimistic with a Fed rate cut. It kind of doesn't make sense," said Michael Matousek, head trader at U.S. Global Investors Inc. "We've seen economic numbers over the past few weeks. It's not hot but it's still running strong. So why would you really want to cut rates?"

The yield on 10-year Treasury notes rose to its highest level since last November earlier in the session, pressuring equities, and was last at 4.417%. Market focus now shifts to the March reading of the U.S. Consumer Price Index (CPI), due later in the week, that is expected to show a rise in headline inflation to 3.4% year-on-year, from 3.2% in February.

Also on the radar is the release of minutes from the Fed's latest meeting, where it stuck to its guidance of three rate cuts in 2024. Investors await commentary from Chicago Fed President Austan Goolsbee and his Minneapolis counterpart Neel Kashkari later in the day for policy cues.

Meanwhile, Wells Fargo raised its year-end target for the benchmark S&P 500 index to 5,535 - the highest among Wall Street brokerages - from its previous forecast of 4,625​. Cushioning some losses, Tesla rose 4.6% after CEO Elon Musk said the company would unveil the Robotaxi on Aug. 8.

At 9:49 a.m. ET, the Dow Jones Industrial Average was up 72.78 points, or 0.19%, at 38,976.82, the S&P 500 was up 0.83 points, or 0.02%, at 5,205.17, and the Nasdaq Composite was up 14.24 points, or 0.09%, at 16,262.76. Eight of the 11 S&P 500 sectors advanced, with consumer discretionary leading gains, while information technology led declines.

Cryptocurrency-related stocks advanced, tracking rising bitcoin prices. Exchange operator Coinbase Global, crypto miner Marathon Digital and software firm MicroStrategy added between 8.2% and 11.2%. Advancing issues outnumbered decliners by a 2.60-to-1 ratio on the NYSE and by a 1.74-to-1 ratio on the Nasdaq.

The S&P index recorded 15 new 52-week highs and one new low, while the Nasdaq recorded 46 new highs and 33 new lows.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)