The S&P 500 Index ended a choppy session slightly lower on Monday as worries about a slowdown in global economic growth lingered and as Apple fell after the company unveiled its video streaming service.
Indexes moved between negative and positive territory throughout the session, with all eyes on the Treasury market. 10-year Treasury yields fell to their lowest levels since December 2017, while the yield curve between three-month bills and 10-year notes inverted further as investors continued to assess last week’s dovish pivot by the Federal Reserve.
The Fed flagged an expected slowdown in the economy last week and decided against raising interest rates this year.
The yield curve inversion, if it holds, is seen by some as an indicator that a recession is likely in one to two years. Ten-year notes were last yielding about 2.4 percent.
The S&P 500 financial index ended down 0.4 percent, falling for a fifth straight day, its longest losing streak this year.
The Dow ended higher, helped by a 2.3 percent gain in Boeing after the company said it would brief pilots and regulators this week on software and training updates for its 737 MAX aircraft. Ethiopian Airlines and Qatar Airways expressed confidence in the company despite a recent fatal crash.
Apple fell 1.2 percent and were the largest drag on the major domestic equity indexes. The company unveiled its long-awaited Apple TV+ original content streaming service and Apple TV Channels subscription service, joining a crowded market for streaming options.
Investors largely shrugged off Special Counsel Robert Mueller’s report that President Donald Trump’s campaign did not collude with Russia. The report left unresolved the issue of whether Trump obstructed justice by undermining the investigations that have dogged his presidency.
Top U.S. officials travel to Beijing for the latest round of high-level talks, which are scheduled to start on March 28.
In a bright spot, the consumer discretionary sector rose 0.6 percent, supported by gains in Home Depot and Amazon.
Approximately 6.96 billion shares changed hands on the major domestic equity exchanges, as compared to the 7.69 billion share average over the past 20 trading days.