Oil Price Drop Eases Inflation Worries, Boosts Wall Street Indexes

Oil prices dropped on Monday to $83.83 per barrel of Brent crude, down 4.7% from previous levels.

This decline helped ease concerns about inflation and triggered a rally in Wall Street indexes, with the S&P 500 rising 1.3%, the Dow Jones Industrial Average up 533 points or 1%, and the Nasdaq composite increasing by 2% as of 12:27 p.m. Eastern time.

The sharp decline in oil prices followed President Donald Trump's statement over the weekend that he would hold off on new strikes against Iran at the urging of allies in the region, easing worries about the global flow of crude and Treasury yields.

Treasury yields fell to 4.69% from 4.75% late Friday, with the yield on the 10-year Treasury remaining well above its level before the war with Iran.