U.S. stocks opened lower on Monday as investors confronted a renewed rise in oil prices, higher Treasury yields and a heavy week of inflation and labor-market data.
By about 11 a.m. Eastern time, the S&P 500 was down roughly 0.9%, the Dow Jones Industrial Average had fallen about 0.8%, and the Nasdaq Composite was lower by around 1.2%. The move erased a large part of last week’s advance and pulled the major indexes back from recent record territory.
Oil and bond yields pressure stocks
Energy prices moved higher after renewed uncertainty around U.S.-Iran negotiations and the Strait of Hormuz. West Texas Intermediate crude traded near the mid-$90s per barrel, while Brent remained above $100 during parts of the session. The higher energy outlook revived concerns about inflation and transport costs.
The bond market added another source of pressure. The U.S. 10-year Treasury yield moved above 5.2%, keeping borrowing costs elevated for companies and households and reducing the relative appeal of high-valuation growth stocks.
Technology shares lead the decline
Technology stocks were among the weakest areas in early trading, although Nvidia moved against the broader trend after announcing a major expansion of its share repurchase authorization. The company said its board approved an additional $150 billion, lifting the remaining authorized amount to $235 billion.
Investors are also preparing for several important economic releases this week, including inflation and employment data that could shape expectations for Federal Reserve policy.
What markets are watching this week
Oil prices, Treasury yields and incoming U.S. economic data are likely to remain the key short-term drivers. Corporate results from companies including Micron and Nike will also provide a read on consumer demand and spending on artificial-intelligence infrastructure.
Sources: Charles Schwab market update, Associated Press market coverage, Nvidia investor relations.
