Bond Yields Surge, Sentiment Sours: Stocks Plummet on Monday

U.S. stocks plummeted on Monday as bond yields continued to surge, causing widespread market weakness. The benchmark 10-year Treasury yield rose above 5.2 percent, while the 30-year Treasury yield climbed above 5.50 percent.

Justin Bergner, portfolio manager at Gabelli Funds, attributed the sell-off to the rising bond yields and increased competition for capital from AI hyperscalers and consumers. 'The competition for capital with AI hyperscaler spending ... also pressures the consumer with higher rates, so it kind of makes the market more one-sided than it already is,' he said.

The Standard & Poor's 500 closed at 7,683.92, down 59.49 points, or 0.77 percent, on volume of 2.754B. The Dow Jones Industrial Average fell to 51,481.72, shedding 346.90 points, or 0.67 percent, on volume of 433.442M.

The British pound was the lone gainer among major currencies on Monday, while most other major currencies slipped against the U.S. dollar. The euro, Japanese yen, Australian dollar, Canadian dollar, and Swiss franc all finished lower.