U.S. equities fell dramatically on Monday as a good retail sales data was overshadowed by rising Treasury yields and fears about Iran-Israel geopolitical tensions.
After retail sales rose more than expected in March, stocks rose after the S&P 500's largest one-day percentage decline since Jan. 31.
Goldman Sachs (GS.N), opens new tab rose 2.92% after its first-quarter profit beat Wall Street estimates, driven by a recovery in underwriting, deals, and bond trading that raised its earnings per share to its highest since late 2021.
M&T Bank (MTB.N) rose 4.74% after expecting greater yearly net interest income (NII), while Charles Schwab (SCHW.N) rose 1.71% after reporting a quarterly profit drop. Three stocks outperformed the S&P 500 financial (.SPSY), opens new tab sector.
Concerns that Israel-Iran conflicts could escalate weakened gains, and Treasury rates rose to their highest level since November.
"You saw a little bit of a bounce this morning because maybe people thought 'OK it sold off on Friday' in anticipation of something really bad in the Middle East," said Boca Raton's Kace Capital Advisors managing partner Ken Polcari.
"All the geopolitical stuff is going to cause tension and anxiety in the market, the realization that rates are not going down anytime soon has got to be finally hitting home, that's what the bond market is telling you, that rates are going to go higher."
Dow Jones Industrial Average (.DJI) slid 248.13 points, or 0.65%, to 37,735.11, S&P 500 (.SPX) lost 61.59 points, or 1.20%, to 5,061.82, and Nasdaq Composite (.IXIC) plummeted 290.07 points, or 1.79%, to 15,885.02. New York Stock Exchange (NYSE) traders operate on the floor.
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