Major market averages tilted slightly higher on Monday morning after the broad market broke its winning streak.
Early on and the Nasdaq Composite (COMP.IND) gained 0.2%, the S&P 500 (SP500) advanced by 0.1%, and the Dow (DJI) traded near flat.
The 10-year Treasury yield (US10Y) fell 1 basis point to 3.72%. The 2-year yield (US2Y) fell 2 basis points to 4.74%.
“Markets will start the week trying to work out what to make of the volatile situation in Russia that saw a remarkable turn late Friday and into Saturday,” Deutsche Bank’s Jim Reid said. “In truth perhaps the mutiny and then truce, all within 24-36 hours means more political instability longer-term than shorter-term.”
“At one point on Saturday though, when the Wagner group’s Prigozhin had his troops march towards Moscow, it felt that there was a lot of potential global market event risk over the next few days. That has perhaps died down but this whole episode probably increases both the positive and negative tail risks a bit. It could increase the risk of escalation by Mr Putin to reinstate an air of authority, or it could leave him vulnerable which could be seen as positive or negative for Europe, Ukraine and wider markets. It’s just impossible to tell at this stage.”
Among active stocks, Mercury Systems (MRCY) fell after it ended a strategic review with no sale.