Nasdaq Higher, Dow Lower; Tesla and Zoom in Spotlight

Tech shares played a key role in boosting U.S. stock indexes on Monday, despite the pressure from higher yields on longer-term Treasurys. Yields, which rise when bond prices fall, experienced an increase overnight, contributing to the gains observed at the start of U.S. trading. Investors are scaling back their bets on future interest-rate cuts due to the persistently strong U.S. economy. This has caused the 10-year yield to close at 4.339%, surpassing the nearly 16-year high it reached last Thursday, and marking its highest close since November 2007.

The rise in yields has had a negative impact on stocks, with all three major indexes experiencing losses last week. The volatility in stocks this month has prompted some traders to turn to one-day options as an alternative. In the midst of this, U.S. stocks finished mostly higher, with the Nasdaq gaining strength in afternoon trading to close up 1.6%, the S&P 500 climbing 0.7%, and the Dow ending slightly lower. However, all three indexes are still in the red for the month so far.

Tech shares saw gains, with Nvidia rallying ahead of its highly anticipated earnings release on Wednesday. Meta Platforms and Microsoft also experienced solid increases, as did Tesla. On the other hand, Treasury yields continued to rise, with longer-term Treasurys leading the rout. The two-year yield also saw an increase, reaching 4.99%.

Chinese stocks, however, faced a decline, with the benchmark CSI 300 losing 1.4% and Hong Kong's Hang Seng Index falling deeper into a bear market. Investors are closely monitoring China's faltering economy, especially after key bank lending rates were not cut as much as the market had expected.

European natural gas prices have once again jumped, this time due to labor disputes in Australia's energy industry. This has caused gas prices in Europe to surge by over 30% in August.

Looking ahead, central bankers, including Federal Reserve Chair Jerome Powell, will be speaking at the annual Jackson Hole gathering later this week. Investors will be paying close attention to their remarks for any potential market impact.