US Stocks Tumble as Bond Yields Rise and Oil Prices Continue to Soar

Stocks in the US fell on Monday as rising bond yields pressured the economy and oil prices continued to yo-yo due to tensions between Iran and the West. The S&P 500 dropped 0.8% and the Dow Jones Industrial Average lost 347 points, or 0.7%, while 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.

The price for Brent crude in the most actively traded part of the oil market briefly climbed above $101 per barrel Monday morning, but it pared its gains as US officials said mediators were still working with Iran and the US on a deal to end the fighting and open the Strait of Hormuz. The average price for a gallon of regular gasoline is up to nearly $4.48 from $3.13 a year ago, according to AAA.

American Airlines fell 2.5%, and United Airlines lost 2.2% as stocks of airlines and other companies with big fuel bills sank due to the rise in oil prices. Gold miners were also weak after the price of gold sank 3.5%. Newmont, the Denver-based mining giant, slid 4.4%.