Stock Market Today: Energy Sector Surge Offsets Tech Decline
The Dow started the week on a positive note on Monday as quarterly gains by major technology companies and a rally in the energy sector offset weakness in the tech sector ahead of a Federal Reserve meeting starting this week.
The Dow Jones Industrial Average
gained 0.28% or 90 points, while the Nasdaq
fell 0.41% and the S&P 500 gained 0.15%.
Energy rose more than 3%, supported by a jump in oil prices amid a weaker dollar and lingering concerns over supply fears.
Natural gas prices, meanwhile, rose sharply after Russia's Gazprom said it would cut gas flows to Europe via Nord Stream by 20% due to maintenance issues.
APA (NASDAQ:APA), Marathon Oil (NYSE:MRO) and Diamondback Energy (NASDAQ:FANG) were among the top gainers, all up nearly 6%.
Meanwhile, the financial sector also played a role in the broader market climb, powered by a rally in regional banks as Treasury yields rose.
SVB Financial Group (NASDAQ:SIVB) rose more than 8% after Evercore raised its rating on the stock to outperform from in-line, citing an attractive entry point.
Technology kept broad market gains in check ahead of quarterly results from major tech companies. Microsoft Corporation (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) are set to report earnings on Tuesday, while Meta (NASDAQ:META), Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) are set to report earnings later this week.
The rally in the tech sector since mid-June has coincided with a drop in Treasury yields - making it more attractive for the market to own higher-valued growth sectors - as investors price in a less hawkish Federal Reserve on signs that inflation is moderating as economic growth softens.
"The tightening in financial conditions to date is already large enough and the growth trajectory low enough that an acceleration would be unnecessarily risky," Goldman Sachs said in its latest note forecasting the Fed will raise rates by 0.75% on Wednesday.
Consumer discretionary shares also weighed on the broader market amid weakness in retailers and home builders.
On the earnings front, Newmont Goldcorp (NYSE:NEM) fell 13% after the mining company reported quarterly profit that fell short of Wall Street estimates.