US Stocks Plummet Amid Oil Price Surge and Rising Bond Yields

US stocks fell on Monday after oil prices and bond yields rose to their highest levels in two decades. The yield on the 10-year Treasury briefly topped 5.27% before pulling back to 5.23%, while the 30-year Treasury yield rose to 5.55%. These increases pressured the economy as higher yields make borrowing money more expensive for everyone, undercutting prices for stocks and other investments.

The price of Brent crude oil climbed above $101 per barrel but later pared its gains, settling at $97.83. This rise in oil prices has worsened inflation, with the average price for a gallon of regular gasoline up to nearly $4.48 from $3.13 a year ago. Airlines and companies with big fuel bills suffered losses as stocks fell 0.8%.

The S&P 500 index dropped 59.72 points to 7,683.69, while the Dow Jones Industrial Average declined by 347.11 to 51,481.51. Nvidia's stock rose 1.7%, despite some AI stocks coming under pressure after industry leaders said it needs to slow its development.