Trump Rejects Iran Ceasefire Offer, Stocks Plunge as Oil Prices Soar
The stock market's relief rally was short-lived as President Trump rejected Iran's seven-day ceasefire offer, which would have reopened the Strait of Hormuz. Oil prices rose about 3% on Monday morning, and the 10-year Treasury yield reached its 2007 high at 5.23%. The S&P 500 also gave back Friday's gains, falling to $767.81 in pre-market trading.
The reaction was immediate, with oil prices rising sharply and the 10-year Treasury yield increasing to its highest level since 2007. The VIX index, which measures volatility, rose nearly 10%. In Asia, Korea's KOSPI fell 2.7%, with SK Hynix plummeting 5%.
Nvidia made headlines on Monday morning by launching guardrails for AI agents, which would prevent rogue AI from causing harm. The company claims its Open Agent Safety Platform could have stopped a recent breach of Hugging Face's system. Nvidia's shares were barely affected in pre-market trading, but the market is taking notice of the potential breakthrough.