US stocks were little changed, after the major indexes reached a two month low, as a rally in energy stocks on a jump in oil prices offset a selloff in technology shares led by Apple Inc.
Growing expectation that the US Federal Reserve could raise the interest rates for the first time since 2008 before September pushed the Dow Jones Industrial Average into the red for the year while the technology heavy Nasdaq Composite and the S&P 500 Index fell to their lowest in a month.
“What we’ve seen is a confirmation that the stock and bond market is dependent on easy monetary policy,” James Abate, chief investment officer of Centre Funds in New York, told Reuters.
“The market continues to muddle and is very susceptible to a correction in the case of a shock incident.”
The Dow Jones Industrial Average was mostly flat in early afternoon trading inching up by 14.48 points or 0.08% at 17,791 points, the lowest it have been all year.
The benchmark S&P 500 Index was bolstered slightly by a growth in energy shares edging up 5.54 points or 0.3% most recently at 2082 points.
The Nasdaq Composite extended losses after a selloff in technology shares saw it fall by 1 point or 0.02% at 5,007.50 points.
“Treasurys had one of their worst weeks in years last week, with the 10-year yield gaining 28 basis points and closing above 2.4% for the first time since last October. As a result, there was a huge dispersion in equities on the sector level, with interest-rate sensitive shares such as utilities, telecoms and consumer staples underperforming,” Jonathan Krinsky, chief market technician at MKM Partners, told Market Watch.
“More and more stocks are falling below their 200-day moving average. While this is a concern, until price breaks out of its range, it is difficult to act on this. The big levels for us are [S&P 500 at] 2,120 resistance, and 2,040 support,”
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