Stock market today: Dow, S&P 500, Nasdaq slip as investors rethink rate-cut bets

Live2 updates

• Mon, October 7, 2024 at 3:30 PM GMT+2

  Stocks open lower as 10-year Treasury yield tops 4%

  The major averages opened lower on Monday as the 10-year Treasury yield (^TNX) rose back above 4%.

  The Dow Jones Industrial Average (^DJI) fell about 0.3% after notching a fresh record high on Friday. The S&P 500 (^GSPC) shed roughly 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) fell 0.5%.

  The yield on the benchmark 10-year Treasury (TNX) hit 4% for the first time since August, as hopes of another 50 basis point rate cut from the Federal Reserve faded after a stronger-than-expected September jobs report.

  Oil prices extended gains on Monday following their biggest weekly increase in more than a year as markets awaited an Israeli retaliation against Iran over its missile barrage last week.

  West Texas Intermediate crude futures (CL=F) advanced more than 1% to trade above $75 per barrel, after gaining more than 9% last week. Brent futures (BZ=F), the international benchmark, also advanced more 1% to trade above $79 per barrel.

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  Mon, October 7, 2024 at 2:38 PM GMT+2

  Pfizer stock jumps on reports of Starboard taking $1 billion stake

  Pfizer (PFE) stock rose 2.6% pre-market Monday, as investors reacted to multiple media reports that activist investor Starboard Value has taken a $1 billion stake in the pharmaceutical giant.

  Starboard has approached Pfizer executives Ian Rand and Frank D’Amelio about helping turn the tides at the drugmaker, various media outlets reported, citing unnamed sources. Pfizer, the manufacturer of the world’s first-approved COVID-19 vaccine, has struggled to maintain its dominance post-pandemic. Rand and D’Amelio expressed interest in assisting Starboard, The Wall Street Journal reported. Starboard’s plans and the changes it would make at Pfizer are unclear.

  The stock’s moves early Monday morning will bring it into the positive for the year, but shares are far below record highs near $60 in 2022.

  Pfizer is set to report earnings on October 29. Wall Street analysts expect the company to report revenues of $14.8 billion, up about 12% from the prior year. Only half of analysts covering the stock recommend buying it, according to Bloomberg data.