On Monday, the S&P 500 Index closed down 0.41%, the Dow Jones Industrial Average fell 1.13%, and the Nasdaq 100 Index declined 0.21%. The drop occurred amid escalating tensions in the Middle East following clashes between the US and Iran in the Strait of Hormuz, which led to a 4% spike in WTI crude oil prices. Significant market impacts included a rise in the 10-year Treasury note yield to a five-week high of 4.46%.
In economic news, US factory orders surged by 1.5% for March, surpassing estimates of 0.6%, marking the largest increase in four months. Despite these strong economic indicators, market optimism was tempered by geopolitical developments and remarks from New York Fed President John Williams regarding future interest rate adjustments.
Additionally, corporate earnings reports showed that 82% of S&P 500 companies that have reported for Q1 surpassed earnings expectations, indicating a projected 12% year-over-year increase in earnings. However, specific sectors, such as freight operators and homebuilders, faced declines amid rising bond yields and competitive pressures from companies like Amazon, which announced expanded supply chain services.
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