US Stocks Plunge as Oil Prices, Treasury Yields Surge

US stocks plummeted on Monday as oil prices and Treasury yields surged, fueled by concerns over an Iran war peace deal and its potential impact on the Federal Reserve's rate path.

Crude prices accelerated higher in recent days, with investors weighing uncertainty over the prospects for a peace agreement. Rising oil prices have sparked inflation worries, pushing US Treasury yields higher along with comments from Fed officials indicating that more rate hikes might be needed to moderate price pressures.

'Iran is driving oil prices, and oil prices are driving inflation, and inflation is driving interest rates,' said Jack Ablin, chief investment strategist at Cresset Capital Management in Chicago. 'We're getting to a point now where interest rates are looking pretty attractive relative to equities, which is really the first time in close to 20 years.'

The S&P 500 lost 59 points, or 0.76%, to end at 7,684.41 points, while the Nasdaq Composite lost 246.62 points, or 0.91%, to 26,822.09. Boeing shares tumbled after Federal Aviation Administration Administrator Bryan Bedford said that software problems with the planemaker's 737 MAX will delay certification of the largest variant.