US Stocks Slide as Oil Prices Surge and Bond Yields Climb

US stocks took a hit on Monday as oil prices surged and bond yields climbed to their highest levels in nearly two decades. The S&P 500 dropped 0.8 percent, with much of its gain from last week erased.

The Dow Jones Industrial Average fell 347 points, or 0.7 percent, while the Nasdaq composite sank 0.9 percent. These losses were largely driven by concerns about inflation and Washington's massive debt load.

The yield on the 10-year Treasury briefly topped 5.27 percent before pulling back to 5.23 percent, its highest level since 2007. The 30-year Treasury yield rose to 5.55 percent from 5.49 percent, reaching levels not seen since 2004.

The rise in oil prices was partly due to uncertainty about when the war with Iran will allow tankers to flow freely again through the Strait of Hormuz. President Donald Trump said over the weekend that he's rejecting an offer from Iran to reopen the strait and resume talks on its nuclear program.

Oil prices initially climbed above $101 per barrel before paring their gains as US officials said mediators were still working with Iran and the United States on a deal. The price for Brent crude settled at $97.83, up 0.4 percent.