top line

The stock market moved lower on Monday—extending a recent losing streak—while rates surged ahead of a big week of quarterly earnings results, with investors remaining nervous about the impact of surging inflation on corporate profits and consumer spending.

facts

Stocks added to last week’s losses, despite a comeback late in the day: The Dow Jones Industrial Average fell 0.1%, less than 100 points, while the S&P 500 was flat and the tech-heavy Nasdaq Composite lost 0.1%.

Government bond yields climbed higher yet again on Monday, with the closely watched ten-year Treasury note spiking up to 2.88%—its highest level since 2018, after having traded at less around 1.7% just two months ago.

Despite a decent start to earnings season, with roughly 79% of the 38 companies in the S&P 500 that have reported results so far beating estimates, investor uncertainty remains high, with inflation, rising rates and the war in Ukraine both weighing on markets.

Wall Street experts are now increasingly warning that quarterly earnings are likely to take a hit, as surging inflation leads to rising costs, which will impact both corporate profit margins and consumer spending.

Shares of brokerage Charles Schwab fell over 10% on Monday after disappointing quarterly earnings, while Bank of America, meanwhile, reported results that came in slightly above expectations, with its stock rising over 3%.