US Stocks Slide as Bond Selloff Deepens

US stock indices closed lower on Monday as the standoff between the US and Iran fueled oil-market volatility and dragged down bonds. The S&P 500 fell 0.8%, the Dow shed 347 points, and the Nasdaq lost 1.1%. The renewed oil rally stoked concerns that rising inflationary pressures could trigger further Fed rate hikes. The bond selloff deepened after President Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz. The 10-year yield reached a 19-year high. The PCE inflation report and jobs report due this week will provide further insight into the health of the US economy and the potential path for the Fed. Tight financial conditions continued to pressure AI hyperscalers and chipmakers, which are undergoing record levels of debt issuance. Microsoft lost 1.3%, Amazon fell 1.4%, and Meta shed 4.8%, while Micron retreated 2.6%, AMD dropped 3.6%, and Intel tumbled 5.7%. Nvidia was the exception, rising 1.7% after increasing its share buyback plan by a record $150 billion.