By Yasin Ebrahim

Investing.com – The S&P 500 gave up intraday gains Monday, driven by a slump in energy and technology as investors weighed the ongoing Russia-Ukraine war and the start of the Federal Reserve rate hikes expected later this week.

It fell 0.6% while the gain 0.1% or 36 points was recorded.

After talks between Russia and Ukraine on a ceasefire that might pave the road to an ending of the war, energy stocks plunged 3%. 

After little progress on Monday, Russia and Ukraine will resume negotiations on Tuesday.

Morgan Stanley’s downgrades of oil majors such as Occidental Petroleum (NYSE 🙂 also shook the energy mood. Chevron (NYSE:) To equal-weight or overweight, due to valuation concerns.

Tech, however, was not in any clear sight as investors continued to ignore the sector and Treasury yields surged ahead of the Federal Reserve rate rise in three years.

“After a 25 basis point hike at the March meeting, we see the Fed delivering an additional five 25 basis point rate hikes this year, followed by four hikes in 2023 to end the year at 2.625%,” Morgan Stanley said in a note.

Apple (NASDAQ) was the leader in the decline of 2%, amid concerns about supply shortages after Foxxconn, one its main suppliers China, announced that it would cease operations in Shenzhen due to an increase in Covid-19 cases.

Amazon (NASDAQ 🙂 and Alphabet were both 2% lowers, while Facebooked rose less than 1%.

However, not all industries are at risk from rising interest rates. The week began on a positive note for the financial sector, as investors believe that the banks will reap the benefits of rising interest rates.

Northern Trust (NASDAQ:), Charles Schwab Cincinnati Financial (NASDAQ):, with the former up over 4%

In other news,  Ford (NYSE:) slipped 2% after Jefferies cut its price target on the automaker to $18 from $20 amid concerns that rising input costs and supply-chain woes will weigh on growth.