U.S. stocks settled lower on Monday, with the Dow Jones Industrial Average dropping 152 points to close at 52,421.20. The S&P 500 fell 0.48% to 7,619.98, and the Nasdaq Composite dipped 0.56% to 26,186.41.

The sell-off occurred as the 10-year Treasury yield briefly topped 5% for the first time since 2023 on an intraday basis. Oil prices also surged, extending last week’s gains after Saudi Arabia shut the East-West pipeline.

Sector Performance

Most sectors on the S&P 500 closed negative. Industrials, information technology, and utilities recorded the biggest losses. Communication services and health care stocks bucked the trend, closing higher.

Money rotated out of the AI hardware complex into security software. This shift followed comments from frontier-lab chief executives arguing that model development is moving too fast.

Stock Movers

Zscaler Inc (NASDAQ: ZS) climbed around 17%, building on a Citi price-target raise to $205 from $175 on Sept. 8 and Wedbush’s Outperform coverage initiation on Sept. 11.

Corning Inc (NYSE: GLW) shares dropped 14% after the company announced a $2 billion offering.

Market Sentiment

The CNN Money Fear and Greed index remained in the “Fear” zone with a reading of 31, down from a prior reading of 33. The index measures market sentiment based on seven equal-weighted indicators, ranging from 0 (maximum fear) to 100 (maximum greed).

Weekly Context

Major indices recorded losses last week. The Dow dropped 1.6%, the S&P 500 lost 0.8%, and the Nasdaq declined around 0.7%.

Investors are awaiting earnings results from Forgent Power Solutions Inc (NYSE: FPS), Vera Bradley Inc (NASDAQ: VRA), and Trip.com Group Ltd (NASDAQ: TCOM).

Macy's Inc (NYSE: M) shares fell around 4% after the retailer reported second-quarter fiscal 2026 results that topped Wall Street expectations but issued a weaker-than-expected third-quarter earnings outlook.

U.S. stocks traded lower midway through trading, with the Dow Jones index falling more than 300 points on Thursday. The Dow traded down 0.60% to 52,065.92 while the NASDAQ dipped 0.55% to 26,109.70. The S&P 500 also fell, dropping 0.54% to 7,595.24.

Macy's Earnings Details

Adjusted earnings per share was 40 cents, excluding a 23-cent net tariff refund benefit, beating the 37-cent consensus estimate. Sales rose 1.1% year over year to $4.866 billion, topping the $4.826 billion estimate.

For the third quarter, Macy's expects an adjusted loss of 19 cents to 23 cents per share, compared with an estimated loss of 6 cents. Sales are projected at $4.65 billion to $4.70 billion versus the $4.68 billion estimate.

What the Numbers Show

The Q2 adjusted EPS beat was significantly influenced by non-recurring items. The 23-cent net tariff refund benefit constituted a major portion of the reported 40-cent adjusted EPS, suggesting that core operational profitability may have been lower than the headline beat implies.

Market Movers

Consumer staples shares jumped by 0.6% on Thursday. In trading on Thursday, materials stocks fell by 1.6%.

Equities Trading Up

• Tenon Medical Inc (NASDAQ: TNON) shares shot up 86% to $4.53 after the California-based medical device company disclosed it repaid its outstanding convertible notes early.
• Shares of Orchestra Biomed Holdings Inc (NASDAQ: OBIO) got a boost, surging 9% to $5.92. BTIG analyst Marie Thibault upgraded Orchestra BioMed from Neutral to Buy and announced a $10 price target.
• AeroVironment, Inc. (NASDAQ: AVAV) shares were also up, gaining 7% to $151.00 following upbeat quarterly earnings.

Equities Trading Down

• Cooper Companies Inc (NASDAQ: COO) shares dropped 15% to $53.71 as the company reported mixed third-quarter financial results and cut its FY26 guidance below estimates.
• Shares of American Eagle Outfitters Inc (NYSE: AEO) were down 13% to $14.70 following second-quarter results.
• Navan Inc (NASDAQ: NAVN) was down, falling 20% to $20.63. Navan reported upbeat second-quarter fiscal 2027 results, raised its full-year outlook, and announced the acquisition of BoomPop.

Commodities and Global Markets

In commodity news, oil traded up 6% to $101.83 while gold traded down 1.3% at $4,403.60. Silver traded down 5.7% to $64.73 on Thursday, while copper fell 5.1% to $6.5375.

European shares were lower today. The eurozone's STOXX 600 dipped 0.57%, while Spain's IBEX 35 Index fell 0.01%, London's FTSE 100 declined 0.41%, Germany's DAX dipped 0.59%, while France's CAC 40 slipped 0.4%.

Asian markets closed mixed on Thursday, with Japan's Nikkei 225 gaining 0.20%, Hong Kong's Hang Seng index falling 1.27%, China's Shanghai Composite falling 0.43% and India's BSE Sensex gaining 0.19%.

Economic Data

• U.S. producer prices rose 5.4% year-over-year in August, versus the 5.3% rate economists expected and accelerating from July's 4.8% reading, according to Labor Department data released Thursday.
• U.S. initial jobless claims fell by 1,000 to 206,000 in the first week of September, compared to market estimates of 205,000.
• U.S. wholesale inventories increased by 1.3% month-over-month to $958.9 billion in July compared to a revised 0.4% gain in June.
• U.S. existing home sales declined by 2.0% from the previous month to an annualized rate of 3.98 million units in August.
• U.S. natural-gas stocks rose 40 billion cubic feet in the week ending Sept. 4, compared to market estimates of a 31-bcf build.