High Treasury Yields Weigh on S&P 500 and Nasdaq

The S&P 500 and Nasdaq dropped as U.S. Treasury yields remained high, impacting investor sentiment. Economic indicators suggest persistent inflation, leading to concerns about delayed rate cuts from the Federal Reserve. The Dow rose, buoyed by health sector gains, while technology stocks declined.

The S&P 500 and Nasdaq experienced declines on Monday, with the S&P 500 reaching a two-month low as U.S. Treasury yields persisted at high levels. Investor sentiment was dampened by ongoing discussions around the Federal Reserve's pace of future rate cuts.

Economic indicators have shown a resilient U.S. economy with persistent inflation, leading to higher bond yields. The Dow Jones Industrial Average, however, posted gains thanks to a strong performance in the health sector, particularly with UnitedHealth Group seeing a 4.3% rise.

Tech stocks led the losses, while economic data and policy outlooks from the Federal Reserve are anticipated to influence market directions in the coming days. Additionally, upcoming Consumer Price Index numbers and central bank reports are set to shape market expectations.

(With inputs from agencies.)