US Market Mostly Lower Amid Covid And Energy Fears

Energy shares were the worst performing of the 11 major S&P sectors, down 1.48 percent along with crude prices as mounting coronavirus cases and the potential for restrictions, particularly in China, raised worries about the fuel demand outlook.

China reported more Covid-19 infections, while US cases and hospitalizations were at a six-month high as the Delta variant spread.

Financial shares gained, buoyed by a climb in the 10-year US Treasury yield back above 1.30 percent to its highest level since July 16 as a report on job openings showed further evidence of an improving labor market.

"In general, of the economically sensitive cyclicals, it is the interest-rate sensitives that are going to celebrate this normalization of yields, even if normal is 1.30 percent versus where we were a week ago, which was 1.12 percent . That is driving the action," said Art Hogan, chief market strategist at National Securities in New York.

Investors will watch US inflation readings this week for hints about the path of Federal Reserve policy. On Monday, Atlanta Fed president Raphael Bostic said the United States should be well past the pandemic crisis before the central bank raises rates. Richmond Fed President Tom Barkin said high inflation this year may have already met one of the Fed's benchmarks for raising interest rates.

Later this month, a meeting of Fed leaders in Jackson Hole, Wyoming should provide insight into the central bank's potential plan to begin tapering its bond purchases.

The Dow Jones Industrial Average fell 0.3 percent to 35,101, the S&P 500 lost 0.1 percent to 4,432 and the Nasdaq Composite added 0.2 percent to 14,860..

A strong earnings season has helped US stocks climb to record highs over the past two weeks, as several consensus-beating results from major firms reinforced belief in a post-Covid economic recovery. (Reuters)