Treasury Yields Surge, Dragging US Stocks Down Amid Oil Price Volatility

U.S. stocks took a hit on Monday after Treasury yields rose to their highest levels in roughly two decades, driven by concerns about inflation and the massive U.S. debt load.

The S&P 500 fell 0.8% and gave back much of its gain from last week, which had brought it to the brink of its all-time high. The Dow Jones Industrial Average dropped 347 points, or 0.7%, and the Nasdaq composite sank 0.9%.

The yield on the 10-year Treasury briefly topped 5.27% before pulling back to 5.23%, up from 5.17% late Friday. It's back to where it was in 2007, before the financial crisis and Great Recession sent yields toward zero.

Oil prices have also been a major factor, with Brent crude briefly climbing above $101 per barrel Monday morning due to uncertainty about when the war with Iran will allow tankers to flow freely again through the Strait of Hormuz. The price for Brent settled at $97.83, up 0.4%.