Nasdaq Dives 0.97% as Oil Prices Surge Past $106 per Barrel

The US stock market experienced a downturn on Monday, with the Dow Jones Industrial Average (DJIA) falling by 0.72%, the Nasdaq Composite Index dropping by 0.97%, and the S&P 500 down by 0.81%. The decline was largely attributed to rising oil prices, with Brent crude surging above $106 a barrel, and increasing Treasury yields, which reached their highest levels since 2007 for the 10-year yield and since 2004 for the 30-year yield.

The technology sector was particularly affected, with several semiconductor and AI-related stocks under pressure. However, Nvidia stood out as an exception, gaining around 3% after announcing an additional $150 billion share-buyback authorization, bringing its total stock buyback program to $235 billion.

Investors are keeping a close eye on the upcoming economic reports, including the August PCE inflation reading, manufacturing data, and the September jobs report. The rising cost of oil is also raising concerns about inflation, with market participants closely watching for signs of a slowdown in growth stocks.