All major U.S. equity indices opened the week with losses, as traders shifted to safe-haven bonds and gold amid concerns affecting the health of the U.S. manufacturing activity. In May, the ISM Manufacturing PMI dropped to 48.7, marking a faster-than-expected contraction.
This follows a bleak Chicago PMI report on Friday, which indicated the worst sentiment since May 2020.
The CBOE Volatility Index (VIX), known as the market fear gauge, surged by 9% on a day marred by temporary technical glitches affecting several NYSE-listed stocks, including Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) and Chipotle Mexican Grill Inc. (NYSE:CMG).
At 12:40 p.m. in New York, the Nasdaq 100 index was down 0.5%, eyeing its fourth consecutive session of declines, potentially marking its longest losing streak since early January 2024.
The Dow Jones Industrial Average underperformed tech-heavy indices due to sharp losses in the energy and industrials sectors, weighing down the blue-chip index.
Treasury yields fell nearly 10 basis points, marking the highest one-day decline in yields since May 15 and the third-largest drop of the year. Bond-related assets surged, with the iShares 20+ Year Treasury Bond (NASDAQ:TLT) gaining 1.2%, aiming for its third consecutive day of gains.
As yields dropped, gold rose by 0.9%, fully recovering Friday’s losses, while Bitcoin (CRYPTO: BTC) was up by 2.3%.
Monday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day %chg |
| Nasdaq 100 | 18,443.91 | -0.5% |
| S&P 500 | 5,248.61 | -0.5% |
| Russell 2000 | 2,050.97 | -0.9% |
| Dow Jones | 38,285.51 | -1.0% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.6% lower to $524.01.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) fell 1% to $383.56.
- The tech-heavy Invesco QQQ Trust (ARCA: QQQ) fell 0.2% to $449.52
- Sector-wise, the Health Care Select Sector SPDR Fund (NYSE:XLV) outperformed, up by 0.2%, while the Energt Select Sector SPDR Fund (NYSE:XLK) lagged, down 2.8%.
- Industry-wise, the SPDR S&P Retail ETF (NYSE:XRT), outperformed, up 1.4%.
Monday’s Stock Movers
- Paramount Global (NASDAQ:PARA) rallied over 7% after the company announced it has agreed to the terms of a merger with Skydance, with the official announcement expected in the coming days.
- Meme stocks like GameStop Corp. (NYSE:GME) and AMC Entertainment Holdings Inc. (NYSE:AMC) experienced a sudden spike after trader Keith Gill, known as “Roaring Kitty” on Reddit, posted a screenshot showing that he holds GME shares valued at $115.7 million.
- Lattice Semiconductor Corp. (NASDAQ:LSCC) plunged over 15% after its president and CEO, Jim Anderson, left to lead laser maker Coherent Corp. (NYSE:COHR), which saw a 17% rally.
- Spotify Technology S.A. (NYSE:SPOT) rose 4% after the music-streaming giant announced heightened subscription costs for its premium users.
- Science Applications International Corp. (NASDAQ:SAIC) plummeted 12% after missing revenue estimates last quarter.
Market-Moving Events Outside The US:
In emerging markets, Mexican assets experienced a sharp decline following Claudia Sheinbaum‘s landslide victory in the country’s presidential election on Sunday.
The Mexican Peso tumbled as much as 4.3% against the dollar, marking its worst trading day since March 16, 2020.
Mexican stocks sold off heavily, with the iShares MSCI Mexico ETF (NYSE:EWW) dropping 10%, also its worst day since March 16, 2020, when it tumbled 15%.
Read now: Mexican Peso Suffers Worst Day In Four Years After Sheinbaum Wins Presidential Elections
Image generated using artificial intelligence via Midjourney.