US Stocks Plunge as Treasury Yields Reach Near-Decade Highs
US stocks took a hit on Monday as Treasury yields continued their upward climb, reaching levels not seen in nearly two decades. The S&P 500 fell 0.8% and the Dow Jones Industrial Average dropped 347 points, or 0.7%, with the Nasdaq composite sinking 0.9%. These losses were partly due to rising oil prices, which have been volatile amid uncertainty about when the war with Iran will allow tankers to flow freely through the Strait of Hormuz.
The price for Brent crude briefly climbed above $101 per barrel Monday morning but pared its gains as US officials said mediators were still working with Iran and the United States on a deal to end the fighting and open the strait. The average price for a gallon of regular gasoline is now nearly $4.48, up from $3.13 a year ago.
Stocks of airlines and other companies with big fuel bills took a hit due to the rise in oil prices, with American Airlines falling 2.5% and United Airlines losing 2.2%. Gold miners were also weak after the price of gold sank 3.5%, as rising yields make bonds more attractive to investors.
Nvidia's stock climbed 1.7% after it said its board approved a plan to send up to another $150 billion to shareholders in a stock buyback program, bringing the total remaining size to $235 billion.