Finance

Major benchmarks started the trading week with minor declines, with the benchmark US500 shedding a small fraction of its value to trade around 7,713 points. This weakness follows an optimistic weekly close where the major averages managed to book gains despite macro uncertainty. Investors are currently taking a cautious stance as key labor and inflation data loom later in the week.

United States Treasury yields continue to hover near their cycle peaks, with the 10-year note holding just below the significant 5% mark. The bond market faces ongoing selling pressure driven by robust macroeconomic data releases and expectations of tighter monetary policy. Short-dated instruments, particularly the interest-rate-sensitive two-year note, have hit their highest yield levels in over two years.

Despite the Nasdaq 100 achieving record closes recently, market breadth has notably deteriorated, indicating that the index's growth is reliant on a small cluster of dominant tech firms. The technology sector now commands nearly 60% of the entire index weight, exposing passive investors to substantial sector-specific risk. This stark divergence leaves equal-weighted counterparts trailing and highlights a highly concentrated market rally.