Crude Oil Surge Drives Stocks Lower Amid Inflation Fears

Stocks closed mostly lower on Monday due to rising crude oil prices and increased inflation expectations. The Dow Jones Industrial Average fell to its lowest point in a week, while the S&P 500 Index settled down by 0.33%. The Nasdaq 100 Index, however, rose slightly.

The surge in WTI crude oil prices to a one-week high was fueled by Middle East tensions and geopolitical risks. This led to higher bond yields, with the 10-year T-note yield reaching a 19-month high of 4.77%. Inflation expectations also increased due to the rise in crude oil prices.

Despite this, some sectors performed well on Monday. Energy producers rose after the increase in crude oil prices, while cryptocurrency stocks surged as Bitcoin climbed more than 2%. Cybersecurity stocks also saw gains, with CrowdStrike Holdings leading the way.