Oil Prices Soar, Bond Yields Climb as Stocks Fall Ahead of Central Bank Meetings

Global stocks fell on Monday as rising oil prices and bond yields weighed on investor risk appetite ahead of central bank meetings in the United States and Japan.

The Dow Jones Industrial Average dropped 0.29%, the S&P 500 fell 0.48%, and the Nasdaq Composite declined 0.56%. The Philadelphia chip index plummeted 5.9%.

Oil prices surged, with Brent futures settling up 1% at $105.68 a barrel, after gaining almost 9% last week.

Bond yields climbed, with benchmark 10-year U.S. Treasury yields touching 5% for the first time since 2023, and Germany's 10-year bond yield climbing above 3.51%, its highest level since 2009.

Traders now attach a 90% probability of the Federal Reserve raising rates on Wednesday, with the European Central Bank indicating more rate hikes may follow if inflation picks up.