By Yasin Ebrahim

Investing.com – The S&P 500 was flat Monday, as gains in cyclical sectors including energy and financials were kept in check by a weakness in tech stocks amid pressure from surging Treasury yields.

The fell 0.1%, the gained 0.4%, or 150 points, the Nasdaq was down 0.41%.

As oil prices rose on the back of higher crude supply and rising energy demand, gains in energy were offset by losses last week.

Goldman Sachs (NYSE:) raised its 2022-to-2023 price forecast to range of $81 to $85 per barrel from $75 to $65 per bbl, amid expectations for “reduced OPEC spare capacity as global demand recovers, structural cost inflation across the oil curve and a higher oil price required for US producers to grow given the increase in the cost of capital.”

Occidental Petroleum (NYSE:), Cabot Oil & Gas (NYSE:), and Diamondback Energy (NASDAQ:) were up more than 7%.

A continuing bid for bank stocks led to financials booming. The rise in Treasury yields was underpinned by the increase in Treasury yields. After reaching 1.5%, it dropped.

The Federal Reserve could raise rates faster than some expect because of supply-chain problems that will increase inflation’s pace. Investors bet on the rise in yields.

Da Davidson stated in a note that “new COVID-19 epidemics have closed factories in Vietnam, China and added to higher year over-year raw material and shipping costs and continued U.S. port delays in unloading shipping containers.” The U.S. Labor shortages have caused additional delays in both shipping and trucking sectors.

Lincoln National (NYSE:), People’s United Financial (NASDAQ:), and M&T Bank (NYSE:) were up about 6% on the day.

Apple (NASDAQ:) was almost 1% lower in tech due to fears that supply chain problems could slow down the company’s iPhone shipments.

Inflation and rising rates also affected tech sentiment.

Inflation and rising rates have meant that investors in growth sector tech have to spend longer in order to recover their investment. That is not attractive in an inflationary climate where money is more valuable today than in the future.

Microsoft (NASDAQ:) (NASDAQ:{MSFT,  Google-parent Alphabet NASDAQ:), and Amazon (NASDAQ:) were in the red, while Facebook (NASDAQ:) traded above the flatline.

The economic news was that August saw a 1.8% increase in monthly durable goods orders, which is the highest monthly rise since May.

Pantheon Macroeconomics wrote in a note, “Headline order were lifted by a rebound of the civilian aircraft component as indicated by data from Boeing (NYSE):; the consensus forecast always seemed too low.”