Stocks Plummet as Bond Yields Reach Two-Decade High, Oil Fears Bite

The US stock market took a hit on Monday as yields in the U.S. bond market reached their highest levels in roughly two decades, pushing stocks further away from their record high.

The S&P 500 fell by 0.8% to 7,683.69, while the Dow Jones Industrial Average dropped by 0.7% to 51,481.51. The Nasdaq composite lost 0.9% to 26,820.38, a significant decline given its relatively strong performance this year.

The main culprit behind these losses appears to be uncertainty surrounding the Strait of Hormuz and its impact on oil prices. With tensions between the US and Iran still running high, investors are growing increasingly anxious about the potential disruption to global oil supplies.

Nvidia was a rare bright spot in an otherwise gloomy market, with its stock climbing due to its historic stock buyback announcement. However, this positive news failed to offset the broader market downturn.