Stocks Fall as Oil Prices and Treasury Yields Climb Monday
The S&P 500 and Dow led declines as surging oil prices and rising yields rattled markets after last week's record highs.
U.S. stock indices closed broadly lower Monday as rising crude oil prices and climbing Treasury yields combined to erode investor confidence, pulling all major benchmarks into the red after the S&P 500 touched record territory just last week. The Dow Jones Industrial Average shed 272 points, or 0.51%, closing at 53,465.36, while the S&P 500 dropped 0.52% to 7,745.38. The Nasdaq Composite fell a more modest 0.32%, cushioned by strength in chip and AI-related stocks.
WTI crude surged more than 2% as geopolitical tensions around the Strait of Hormuz and stalled U.S.-Iran nuclear negotiations kept energy markets on edge. That rally lifted S&P 500 energy shares by 0.87% — the only sector to finish in positive territory — but simultaneously reignited concerns about inflation and the interest-rate outlook. Communication services and consumer staples bore the brunt of the selling, dropping 1.47% and 1.46% respectively, while financials declined 1.04%.
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Treasury yields added further pressure, with the 10-year note rising 3.1 basis points to 4.72% and the 30-year bond jumping 4.8 basis points to 5.31% — its highest level since June 2007. Stronger-than-expected New York manufacturing data released Monday contributed to the upward move in yields, reinforcing fears that the Federal Reserve may keep rates elevated longer than markets had hoped.
Semiconductor and AI names provided a notable counterweight. SanDisk extended its post-investor-day rally with an 8.88% gain, bringing its total advance since last Thursday to roughly 35%. Credo Technology, Coherent, Applied Materials, and Marvell Technology all surged between 5% and 9%, helping the Nasdaq 100 outperform with a comparatively slight 0.17% decline.
Investors now pivot to a heavy slate of retail earnings, with Home Depot, Walmart, Target, and Lowe's all set to report this week — results that will offer a fresh read on consumer health following Friday's weaker-than-expected retail sales data. The Federal Reserve's July meeting minutes, due Wednesday, will also be closely watched for clues on the rate path ahead. Continue reading at Forexlive.
