01:40 PM EDT, 10/21/2024 (MT Newswires) -- US equity indexes fell in midday trading Monday amid surging government bond yields and a sell-off in real estate.

The S&P 500 slid 0.3% to 5,848.2, the Dow Jones Industrial Average was down 0.6% to 42,997.6, and the Nasdaq Composite slipped less than 0.1% to 18,483.1 ahead of this week's earnings onslaught. Last week, the S&P 500 and the Dow hit new record highs as earnings boosted sentiment, while macroeconomic data failed to derail expectations for an interest-rate cut next month.

All sectors, except technology, were in the red intraday, with real estate the standout decliner.

Investors lightened most on the real estate sector amid an increase in the probability of the Federal Reserve leaving its interest rate unchanged at the Nov. 7 policy meeting to 15% from 10% a day ago and zero likelihood of a Fed pause a month ago. The dominant probability is, however, 85% for a 25 basis point cut.

US Treasury yields kicked off the week on a higher note intraday, with the 10-year yield surging 10.5 basis points to 4.18%, its strongest since the end of July. The two-year yield jumped seven basis points to 4.03%.

The CBOE Volatility Index, also known as the fear gauge for investors, advanced 3.3% to 18.62. Gold rose 0.4% to $2,739.51 an ounce, and silver jumped 2.5% to $34.07. Both the precious metals touched their respective 52-week highs intraday.

In economic news, the Conference Board's measure of leading indicators fell 0.5% in September, versus the average analyst estimate compiled by Bloomberg for a 0.3% drop, which was in line with the decline in August.

Q3 earnings season comes into full swing this week, with 110 S&P 500 companies scheduled to report results, according to a D.A. Davidson note reminiscent of the onslaught coming as firms listed on other bourses also report. In the S&P 500, 7% of the information technology companies have reported their results. They have posted almost 55% earnings growth versus the 15% consensus.

Companies such as SAP (SAP) and Logitech International ( LOGI ) will report quarterly results after the bell on Monday. Amazon.com ( AMZN ) , IBM ( IBM ) , and Texas Instruments ( TXN ) are among the giants reporting later this week.

In company news, Boeing ( BA ) machinists on strike will vote Wednesday on a new contract proposal that includes a 35% pay increase over four years, IAM District 751 said Saturday. Shares of the aircraft manufacturer jumped 3.5% intraday, the top gainer on the Dow.

Meanwhile, West Texas Intermediate crude oil climbed 2.3% to $70.81 a barrel, after China, the biggest oil importer in the world, lowered interest rates and looks to stimulate its flagging economy.

China's measures are offering support for oil after WTI slumped 8% last week amid easing worries Israel will strike at Iran's energy infrastructure as it continues to weigh its response to Tehran's Oct.1 missile attack. Demand remains light, and the OPEC+ is poised to add 180,000 barrels per day to the market monthly beginning in December as it unwinds its 2.2-million bpd of voluntary production cuts.