(RTTNews) - Following the sharp pullback seen during last Friday's session, stocks saw continued weakness throughout much of the trading day on Monday but managed to regain some ground going into the end of the session.
The major averages climbed well off their worst levels of the day, with the Dow reaching positive territory. While the Dow climbed 159.95 points or 0.3 percent to 49,686.12, the S&P 500 edged down 5.45 points or 0.1percent to 7,403.05 and the Nasdaq slid 134.41 points or 0.5 percent to 26,090.73.
The early weakness on Wall Street came amid lingering concerns about the conflict in the Middle East, as President Donald Trump has warned Iran the "clock is ticking."
Trump said in a post on Truth Social that Iran "better get moving, FAST, or there won't be anything left of them," leading to worries about the U.S. renewing military action.
A report from Axios citing two U.S. officials said Trump is expected to convene his top national security team in the Situation Room on Tuesday to discuss military options.
The U.S.-Iran war has effectively closed the vital Strait of Hormuz, leading to a spike in crude oil prices and subsequent concerns about inflation and the outlook for interest rates.
Treasury yields soared last Friday amid speculation the Federal Reserve's next interest rate move could be an increase rather than a cut.
The price of crude oil and treasury yields moved to the upside over the course of the day, adding to the negative sentiment on Wall Street.
However, stocks regained some ground in late-day trading after Trump he has decide to hold off on attacking Iran tomorrow due to requests from Middle East leaders.
Trump said he has instructed the military to be "prepared to go forward with a full, large scale assault of Iran, on a moment's notice, in the event that an acceptable Deal is not reached."
Sector News
Semiconductor stocks turned in some of the market's worst performances on the day, with the Philadelphia Semiconductor Index tumbling by 2.5 percent.
Considerable weakness was also visible among computer hardware stocks, as reflected by the 2.2 percent slump by the NYSE Arca Computer Hardware Index.
On the other hand, oil service stocks showed a substantial move to the upside, driving the Philadelphia Oil Service Index up by 3.4 percent.
Oil producer, telecom and commercial real estate stocks also saw notable strength, helping limit the downside for the markets.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index slid by 1 percent, while Hong Kong's Hang Seng Index slumped by 1.1 percent.
Meanwhile, the major European markets moved to the upside over the course of the session. While the French CAC 40 Index rose by 0.4 percent, the U.K.'s FTSE 100 Index jumped by 1.3 percent and the German DAX Index shot up by 1.5 percent.
In the bond market, treasuries came under pressure over the course of the session after seeing early strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 2.8 basis points to a one-year closing high of 4.623 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
