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Update: Sliding Communication Services, Surging Treasury Yields Push US Equity Indexes in Mixed Territory
(Updates with index/price moves and political/company news from the first paragraph.)US equity indexes traded mixed on Monday as steep declines in communication services and consumer discretionary stocks weighed, and government bond yields surged despite declining crude oil prices.The Nasdaq Composite dropped 1.3% to 26,166.60, with the S&P 500 down 0.4% to 7,472.79, while the Dow Jones Industrial Average rose 0.3% to 51,712.71 at the close. Communication services sank 3.8%, and consumer discretionary dropped 2.3%.Alphabet's (GOOG, GOOGL) Google DeepMind data scientist and Nobel Prize winner John Jumper is leaving to join Amazon (AMZN) and Alphabet-backed Anthropic, he said Friday. Shares of Alphabet slumped 5.1%, one of the steepest decliners on the S&P 500 and the Nasdaq.Netflix (NFLX) is looking to pursue additional partnerships with traditional broadcasters following the launch of its agreement with French broadcaster TF1, Chief Executive Officer Greg Peters told the Financial Times on Friday. Shares of Netflix dropped 5.8%, among the worst performers on the Nasdaq and the S&P 500.SpaceX (SPCX) commenced its first offering of senior unsecured notes, the proceeds of which will be used to repay outstanding borrowings under its bridge loan facility and to pay related fees and expenses, the company said in a regulatory filing on Monday. Shares sank more than 16%.In geopolitical news, the US issued a 60-day license allowing Iran to sell oil on the international market, giving Tehran an economic lifeline as the two adversaries continued talks for a permanent peace deal, Bloomberg reported.Vice President J.D. Vance described the first round of negotiations as "very very good" and said Iran agreed to allow nuclear inspectors back into the country, the report said. But Iranian officials, who also cited progress, reportedly challenged the claim about access.Vance noted progress on multiple fronts, according to the Associated Press. It included the establishment of "mechanisms" to ensure the Strait of Hormuz stays open and to address fighting between Israel and Iranian-backed Hezbollah militants in southern Lebanon, the news report added.Front-month global benchmark North Sea Brent slumped 2.9% to $78.20 per barrel, and West Texas Intermediate dropped 2.2% to $74.20 per barrel."Our current market targets expect a gradual return to pre-war commercial traffic through the Strait," the Wells Fargo Investment Institute said in a research note. "Energy prices may reverse higher in the coming weeks and make consumer price inflation sticky in the balance of 2026."Most US Treasury yields jumped, with the 10-year up 5.8 basis points to 4.51%. The two-year rate advanced 5.1 basis points to 4.23%.Day-to-day developments aside, even with a near-term reopening of the Strait, it will take time for energy markets to stabilize, according to a Stifel note."Remember, production has been stalled or shut in for months at facilities in the region, which will be slow to return to full capacity," Stifel Chief Economist Lindsey Piegza and Senior Economist Lauren Henderson said in the note. "Additionally, the flow of supply will also take time to restore with more than 1,000 ships reportedly 'stuck' amid the more than three-month closure of the vital waterway."In precious metals, gold futures fell 0.9% to $4,209.8, while silver futures dropped 1.5% to $65.31.
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