US-Iran Tensions Send Stocks Lower as Oil Prices Soar

Stocks are pointing to a lower open on Monday as investors react to the ongoing tensions between the US and Iran. The Strait of Hormuz, a critical shipping route, remains closed after eight months, with oil prices surging 4% to around $96 a barrel following President Trump's rejection of an Iranian proposal over the weekend.

The surge in oil prices is fueling fears of higher inflation, which is contributing to a bond sell-off and rising Treasury yields. The 10-year Treasury yield has reached 5.23%, its highest level since June 2007, while the 30-year yield is at 5.53%. This increase in interest rates makes it more likely that the Federal Reserve will raise interest rates again next month.

This week's economic data includes the August Personal Consumption Expenditures index on Wednesday and the September jobs report on Friday. Investors are also awaiting earnings reports from Micron, Nike, and several other major companies. Meanwhile, Nvidia is launching a software platform aimed at preventing AI agents from hacking into outside websites.