(Reuters) – The New York Stock Exchange opened lower on Monday as investors readjusted their bets on interest rates in light of strong U.S. jobs data, while remaining cautious amid tensions geopolitics and before the publication of American inflation figures.

In early trading, the Dow Jones index lost 130.13 points, or 0.31% to 42,222.62 points and the broader Standard & Poor’s 500 fell 0.24% to 5,736.99 points.

The Nasdaq Composite lost 0.27% or 48.44 points, to 18,089.41.

The U.S. labor market added far more jobs than expected in September, easing fears of a recession and leading traders to abandon expectations of another aggressive Fed rate cut in November, sending prices higher bond yields on Monday and weighs on the stock markets.

The yield on 10-year Treasury bonds reached 4% for the first time in two months on Monday and was up 4.5 basis points at 4.0256% at the opening of the New York Stock Exchange.

Investors are also cautious in a context of geopolitical fears in the Middle East and while the consumer price index (CPI) and the quarterly results of American banks are expected later this week.

“If you want to think about the risks, the purely economic risks have passed – with the exception of a few less straightforward stories in Europe centered on Germany – but there is geopolitics and the US elections are coming closer,” notes Samy Chaar, analyst at Lombard Odier.

In values, APPLE fell by 0.99% after Jefferies began monitoring the value with a recommendation to “hold” and Amazon lost 1.8% while Wells Fargo lowered its recommendation to “online weighting” against ” overweight”.

Vista Outdoor, which agreed to sell itself in two parts for a total amount of $3.35 billion, rose 9.7%.

The American cosmetics group Coty gains around 4.4% after Jefferies raised its recommendation on the stock to “buy” from “hold”.

Lucid, whose third quarter deliveries exceeded expectations on Monday, took 1.3%.

(Writing by Diana Mandiá, editing by Kate Entringer)

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