US Stocks Fall Amid US-Iran Tensions and Soaring Oil Prices
US stocks fell on Monday as tensions between the US and Iran resurfaced, leading to higher oil prices. The Dow Jones Industrial Average dropped 0.7%, while the S&P 500 declined by about 0.8% and the Nasdaq Composite fell by 0.9%. The increase in oil prices was partly due to Brent crude rising to $98 per barrel.
The Treasury yields also jumped, with the 10-year yield climbing 6 basis points to 5.24%, its highest level since 2007, and the 30-year yield reaching 5.56%, its highest level since 2004. These increases in yields are significant, as they indicate that investors are becoming more risk-averse.
Nvidia stock bucked this trend, however, after the company released two new open-sourced tools to help control rogue AI agents and announced a $150 billion share buyback authorization. This move came as top AI leaders, including Anthropic CEO Dario Amodei, have called for slowing down AI development due to recent breaches.
Investors are awaiting a packed week of economic data, including the Personal Consumption Expenditures (PCE) report on Wednesday and the monthly employment report on Friday. This data will provide insight into the health of the economy, which could impact investor decisions.