US Stocks Slide as Oil Prices and Bond Yields Rise

US stocks declined on Monday despite gains in the AI and chip sectors due to rising oil prices and bond yields.

The Dow finished 0.5% lower, while the S&P 500 slipped 0.5% after reaching a new peak last Thursday.

Brent crude rose by 2.7% to $90.87 a barrel following reports that an oil tanker had been seized in the Straight of Hormuz.

Danni Hewson, head of financial analysis at AJ Bell, said concerns about continued tensions in the Middle East have kept the oil price elevated and fed into worries about the anticipated path of inflation.

Rising bond yields also weighed on stocks, with the 10-year US Treasury yield up 2.9 basis points at 4.725% ahead of the release of the latest Federal Open Markets Committee meeting minutes.