Dow Jones kicks off week with 140 points gain, S&P and Nasdaq slide

NEW YORK, New York - U.S. stock markets closed mixed on Monday despite an easing of bond yields. Long-term interest rates hit a nearly 20-year high last week, with the 30-year trading at 5.34 percent.Treasury Secretary Scott Bessent at that time announced thatthe Treasury Department would at least doublethe level of government debt buybacks in the next few months. After that failed to stem the carnage in bond markets, he said Monday the buybacks could be larger than the $4 billion announced last week. He also foreshadowed that the Fed in future may issue shorter-maturing bonds. On Monday, the 30-year Treasury yield dipped to around 5.20 percent."The Treasury attempt to cap long rates by issuing more short-term paper as the financing tool will tether U.S. government interest rate expense ever closer to what the Federal Reserve does with the fed funds rate," Peter Boockvar, chief investment officer at One Point BFG Wealth Partners told CNBC Monday. "I don't think this is something Kevin Warsh will talk about in his speech Friday but it is a new element he's going to have to deal with." Technology shares lagged on Monday, as investors rotated out of growth names and into value-oriented sectors ahead of a busy week for economic data. TheStandard and Poor's 500slipped21.41 points, or0.28 percent, to end at7,652.96. The broad-market index traded between an intraday low of 7,638.17 and a high of 7,670.30, remaining well above its 52-week trough of 6,316.91. Volume on the index reached 2.374 billion shares. TheDow Jones Industrial Average, however, bucked the downward trend, climbing139.98 points(0.26 percent) to settle at53,416.99. The blue-chip index touched a session low of 53,261.95 and a high of 53,508.18, extending its recent run as cyclical and industrial stocks provided support. Trading volume on the Dow totaled 397.364 million shares. The tech-heavyNASDAQ Compositeunderperformed, tumbling200.26 points, or0.76 percent, to close at25,980.19. The decline was led by megacap technology names and semiconductor stocks, which came under pressure amid rising bond yields and profit-taking after a strong rally in recent weeks. "The market is seeing a classic rotation trade today," Michael Torres, chief market strategist at Sterling Capital Advisors said Monday. "Investors are moving money out of expensive tech names that have had a massive run and into value stocks and cyclicals that stand to benefit from a still-resilient economy. The Dow's outperformance tells that story clearly." U.S. Dollar Climbs Across the Board on Monday as Euro, Yen, Swissie, Aussie, Canadian Dollar and Pound Retreat The U.S. dollar traded higher against all major currencies on Monday, extending its recent rally as investors bet on the resilience of the American economy and positioned for key inflation and jobs data later in the week. Theeuroslid against the greenback, with theEUR-USDpair last trading at1.1662, down0.15 percenton the session. The single currency struggled to hold above the 1.17 level as disappointing German business sentiment data weighed on the common currency zone. Against the Japanese yen, the dollar strengthened further, with theUSD-JPYpair rising to159.15, a gain of0.13 percent. The pair remained near multi-month highs as the interest rate differential between the U.S. and Japan continued to favor the dollar, keeping the yen under persistent pressure. The British pound also lost ground, withGBP-USDslipping to1.3629, a decline of0.11 percent. Sterling came under pressure amid concerns over the UK economic outlook and as traders digested the latest signals from the Bank of England regarding future monetary policy moves. Commodity-linked currencies fared no better. The Australian dollar fell, withAUD-USDdropping to0.7148, a loss of0.32 percent, as softer iron ore prices and risk-off sentiment weighed on the antipodean currency. The Canadian dollar weakened sharply, withUSD-CADclimbing to1.3847, an advance of0.63 percent— the largest daily move among the major pairs. The loonie was pressured by sliding crude oil prices and growing concerns about global demand, which overshadowed the Bank of Canada's hawkish signals. The Swiss franc also gave way, withUSD-CHFrising to0.8027, up0.19 percent. The safe-haven franc failed to attract bids despite the risk-averse tone in global equity markets, as the dollar's yield advantage proved more compelling for investors. "The dollar's strength was broad-based and relentless today," Rachel Chen, senior currency strategist at GlobalFX Partners said Monday. "With the Federal Reserve still seen as relatively hawkish compared to its major peers, and with U.S. growth data remaining solid, the greenback continues to find support at every dip." Traders now look ahead to U.S. consumer confidence figures on Tuesday and the Federal Reserve's preferred inflation gauge later in the week, which could provide further direction for the dollar and potentially test its recent upward momentum. Global Stock Markets Close Mixed on Monday as Tech Losses Offset by UK Gains Global stock markets delivered a mixed performance on Monday, with European bourses largely in the red while London's FTSE 100 and Canadian equities bucked the trend, as investors weighed corporate earnings and currency fluctuations ahead of a busy week for economic data. In Canada, theS&P/TSX Composite Indexadvanced93.89 points(0.26 percent) to finish at36,714.12on volume of 264.324 million, buoyed by gains in energy and financial shares as crude prices steadied. In London, theFTSE 100closed at10,854.32, gaining37.76 points, or0.35 percent. The index traded between an intraday low of 10,798.98 and a high of 10,864.75, remaining well above its 52-week trough of 9,107.40. European benchmarks, however, finished lower. Germany'sDAXslid29.96 pointsto end at26,106.60, a decline of0.11 percent, after touching a session low of 26,038.07. In France on Monday, theCAC 40dropped31.42 points, or0.37 percent, to settle at8,453.01, while the broaderEURO STOXX 50fell14.24 points(0.22 percent) to6,447.98. TheEuronext 100 Indexlost6.07 points(0.31 percent), closing at1,932.87, and Belgium'sBEL 20was a rare gainer in the region, adding6.33 points(0.11 percent) to finish at5,813.50. Asian markets saw steeper declines. Hong Kong'sHang Seng Indextumbled492.13 points, or1.89 percent, to close at25,517.33, while South Korea'sKOSPIsuffered the session's heaviest loss, plummeting215.99 points(3.12 percent) to6,696.96. In Japan, theNikkei 225shed488.27 points(0.74 percent), ending at65,528.09. Taiwan'sTWSEfell1.02 percentto44,762.32, Australia's markets outperformed the region, with theS&P/ASX 200rising44.20 points(0.49 percent) to9,103.10and the broaderAll Ordinariesadding47.00 points(0.51 percent) to close at9,316.70.New Zealand'sS&P/NZX 50dropped0.65 percentto13,881.88. Southeast Asian bourses were mostly lower. TheSTI Indexin Singapore slipped8.50 points(0.15 percent) to5,680.46, Malaysia'sFTSE Bursa KLCIedged down0.01 percentto1,736.33, and Indonesia'sIDX Compositefell0.37 percentto6,501.67. In India, theS&P BSE Sensexclosed at77,369.11, down171.72 pointsor0.22 percent. China'sSSE Composite Indexlost0.59 percentto finish at3,882.01on heavy volume of 1.449 billion shares. In the Middle East on Monday,Egypt'sEGX 30fell0.34 percentto55,164.80with turnover of 329.095 million, whileIsrael'sTA-125dropped1.09 percentto4,014.95. South Africa'sTop 40 USD Net TRI Indexdeclined0.86 percentto7,338.87. 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