U.S. stocks came back from an early loss and finished almost unchanged Monday. Technology companies like Apple and Microsoft took big losses on fears about their overseas revenue, but bank stocks continued to surge along with bond yields.
Technology stocks have been weak since last week’s election, and they fell further Monday as investors wonder if Donald Trump’s policies as president will hurt their sales in China and other markets overseas.
Bank stocks built on their post-election gains as bond yields continued to rise. That paves the way for banks to make more money from lending. Government bond yields are now at their highest levels since January.
“The market is sniffing out the belief that some of these Trump policies may drive some better economic growth but also may in fact be somewhat inflationary,” said PNC Chief Investment Strategist Bill Stone.
The Dow Jones industrial average gained 21.03 points, or 0.1 percent, to close at 18,868.69, another all-time high. The Standard & Poor’s 500 index dipped 0.25 points to 2,164.20 after it fell as much as 0.4 percent earlier. The Nasdaq composite sank 18.72 points, or 0.4 percent, to 5,218.40.