U.S. stocks fall after recent big gains; oil, yields rise
* U.S. stocks end lower with growth shares
* Oil prices up as G7 promises new Russian sanctions
* Dollar stumbles as markets reassess rate bets, eye ECB (Updates with closing U.S. markets activity)
By Caroline Valetkevitch
NEW YORK, June 27 (Reuters) - U.S. stocks ended a volatile trading session slightly lower on Monday after posting sharp gains the week before, while oil prices and Treasury yields rose.
Oil climbed following last week's rout, as the Group of Seven nations promised to tighten the squeeze on Russia's finances with new sanctions that include a plan to cap the price of Russian oil.
Investors have been hoping oil's slide from three-month peaks hit earlier in June could ease overall inflation concerns and allow the U.S. Federal Reserve to tighten policy less aggressively than initially feared.
Still, data on Monday showed new orders for U.S.-made capital goods and shipments increased solidly in May, pointing to sustained strength in business spending on equipment in the second quarter.
Stocks moved between gains and losses during the session on Wall Street, with big growth shares leading the way down.
"It's not shocking given we're in a bear market that last week was a good week and this week is turning out to be a bad week," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, which has about $50 million in assets under management.
But given recent strong selloffs, "flat to down a little is progress," he said.
The S&P 500 earlier this month confirmed it is in a bear market.
The Dow Jones Industrial Average .DJI fell 62.42 points, or 0.2%, to 31,438.26, the S&P 500 .SPX lost 11.63 points, or 0.30%, to 3,900.11 and the Nasdaq Composite .IXIC dropped 83.07 points, or 0.72%, to 11,524.55.
The pan-European STOXX 600 index .STOXX rose 0.52% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.31%.
A further easing of COVID-19 restrictions in China helped to support global indexes.
Treasury yields climbed after the capital and durable goods orders surprised to the upside, but the sale of two- and five-year notes was weak.
The 10-year note US10YT=RR rose 7 basis points to 3.194% and the two-year's US2YT=RR yield, which can herald rate expectations, gained 6.9 basis points to 3.126%.
Brent crude futures LCOc1 settled up $1.97, or 1.7%, at $115.09 a barrel, while U.S. West Texas Intermediate crude CLc1 closed up $1.95, or 1.8%, at $109.57.
In foreign exchange, Russia's rouble RUB= was volatile as Russia defaulted on its international bonds for the first time in more than a century, the White House and Moody's credit agency said.
Also, the U.S. dollar edged lower versus its major rivals as investors weighed expectations on inflation and rate hikes. The euro was helped by expectations that the European Central Bank will soon raise interest rates for the first time in more than a decade.
The dollar index =USD fell 0.058%, with the euro EUR= up 0.23% to $1.0578.
Cryptocurrencies stumbled. Bitcoin BTC=BTSP last fell 0.59% to $20,905.04.
Spot gold XAU= dropped 0.2% to $1,822.89 an ounce.
World FX rates YTD Link
Global asset performance Link
Reporting by Caroline Valetkevitch in New York
Additional reporting by Danilo Masoni in Milan, Herbert Lash in
New York and Hannah Lang in Washington
Editing by Nick Zieminski and Matthew Lewis
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