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Stocks are flat on Monday as comeback breaks following two weeks of gains

Traders on the floor of the NYSE, March 25, 2022.

Source: NYSE

The major averages were steady on Monday as investors took a break following two straight weeks of gains.

The Dow Jones Industrial Average fell 50 points. The S&P 500 fell 0.1%. The technology-focused Nasdaq Composite rose 0.1%.

Shares of You’re here popped more than 5% on news it wants to split its stock so it can pay a stock dividend to shareholders.

The Securities and Exchange Commission filing Tesla said will ask at its annual shareholders meeting “for an increase in the number of authorized shares of common stock … in order to enable a stock split of the Company’s common stock in the form of a stock dividend.”

Elsewhere on Monday, parts of The Treasury yield curve inverted on Monday, raising some recession concerns. Earlier on Monday, the yield on the 5-year Treasury note pink to 2.6361%, while the 30-year yield was down less than 1 basis point to 2.6004%.

However, the main yield spread that traders watch — the spread between the 2-year and the 10-year rate — remained positive for now.

Investors continue to monitor developments in Russia’s war on Ukraine. Peace talks between the two nations are set to continue this week, with delegations from both countries traveling to Turkey on Monday. Kremlin spokesperson Dmitry Peskov told reporters that discussions were likely to resume Tuesday.

Oil prices fell on Monday following their recent surge due to the geopolitical conflict. US West Texas Intermediate (WTI) crude futures slide 4.8% to trade at $108.42. Brent crude futures traded 4.4%, lower at $115.44 per barrel.

The Dow and S&P 500 rose on Friday to close out their second consecutive winning week. The Dow gained 153 points, or 0.4%. The S&P 500 advanced 0.5% and has more than erased its losses since Russia invaded Ukraine in late February. Meanwhile, the Nasdaq Composite dipped 0.2% but still finished the week in the green.

“Geopolitical risks remain very elevated and the rally in equities over the past two weeks is impressive. The US economy is still in good shape, but buying every stock market dip probably won’t be the attitude for most traders going forward given how hawkish the Fed has turned,” said Edward Moya, senior market analyst at Oanda.

Stock picks and investing trends from CNBC Pro:

Investors continue to keep a close eye on the Fed. Wall Street firms from Goldman Sachs to Bank of America penciled in half-point hikes in future Fed meetings this year after the central bank’s chair Jerome Powell vowed to be tough on inflation and said rate increases could become more aggressive if necessary.

Investors are looking forward to the Job Openings and Labor Turnover Survey, or JOLTS, this week. The JOLTS report is one set of employment data that the Federal Reserve is watching closely as it tightens monetary policy. ADP will also release its private payrolls data ahead of the main show, the closely watched monthly jobs report, on Friday.


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