The US benchmark equity indexes are on track to close lower on Monday amidst increasing fears of a recession and deteriorating expectations regarding inflation. The Dow Jones Industrial Average witnessed a significant drop of 2.2%, settling at 41,874.9. Meanwhile, the Nasdaq Composite experienced a more pronounced decline of 4.2%, reaching 17,434.5.
The S&P 500 also faced setbacks, down by 2.9% to 5,604.9. Within this downturn, energy and utilities sectors emerged as the sole gainers, contrasting starkly with the technology sector, which was hit hardest. One noteworthy performer on the S&P was Enphase Energy, with its shares climbing nearly 4%.
This uptick coincides with insider activity as Thurman J. Rodgers, a director at the home energy solutions firm, offloaded 100,000 shares for a substantial $6.1 million on Friday. However, the mood was less favorable for DexCom as its shares plummeted by 6.2%. The company disclosed on Friday that it had received a notice from the US Food and Drug Administration, highlighting manufacturing and quality management non-conformities uncovered during inspections at its facilities located in Mesa, Arizona, and San Diego, California.
Furthermore, Tesla, Palantir Technologies, and Microchip Technology also experienced significant losses within the S&P 500, contributing to the overall negativity in the market. On the economic front, the 10-year US Treasury yield decreased by 9.7 basis points, now at 4.2%, while the two-year yield fell by 10 basis points to 3.89%.
Additionally, the price of April West Texas Intermediate crude oil saw a reduction of 1.6%, currently priced at $65.94 per barrel. As investors brace for potential economic challenges, the performance of these key stocks highlights the volatility present in the current market landscape..