The Dow Jones Industrial Average gained 71 points Monday, spurred largely by rising bank and energy stocks. Photo by John Angelillo/UPI | License Photo
Sept. 27 (UPI) -- The Dow Jones Industrial Average started the week in the green while the other two major indexes dipped Monday.
The blue-chip Dow closed the day up 71.37 points, or 0.22%, while the S&P 500 fell 0.28% and the Nasdaq Composite dropped 0.52%.
Bank shares rose Monday as the 10-year treasury yield briefly rose above 1.5% as JPMorgan Chase stock rose 2.42%, Goldman Sachs gained 2.29% and Citigroup climbed 1.52%.
"We believe that these [bond market] moves have provided the spark for another 'Value Rip' across equity markets. In our view, the direction of longer-term interest rates should remain the #1 driver of market returns, sector rotation and thematic performance in the weeks ahead," Chris Senyek of Wolfe Research said in a note.
Energy stocks also saw a boost Monday as West Texas Intermediate crude rose above $75 a barrel, with Occidental Petroleum gaining 7.44% while Exxon Mobil rose 2.97%.
Tech stocks brought the market down with Amazon falling 0.58% Morgan Stanley lowered the company's price target from $4,300 to $4,100, citing the rising cost of labor.
Chipmaker Nvidia also lost 1.91%, while Apple fell 1.05% and Google's parent company, Alphabet, dropped 0.8%.
Investors were also closely tuned in to Washington as lawmakers faced looming votes on a sweeping infrastructure bill, President Joe Biden's $3.5 trillion spending bill and a bill to avoid a government shutdown at the start of October while also suspending the debt ceiling.
"Our political economist believes that the likelihood of a government shutdown increases the longer Democrats pursue this course," said David Kostin, Goldman Sachs chief U.S. equity strategist. "However, we find no major consistent reaction of the S&P 500 to government shutdowns since 1980."