Stocks Settle Lower on Rising Crude Prices and Higher Bond Yields

On Monday, stock indices settled lower due to rising crude prices and higher bond yields. The S&P 500 Index, Dow Jones Industrial Average, and Nasdaq 100 Index all closed down by 0.52%, 0.51%, and 0.17% respectively. E-mini S&P futures and September E-mini Nasdaq futures also fell. The Dow Jones Industrials fell to a 2-week low.

The US-Iran war prospects boosted crude oil prices to a 3-week high, negatively impacting market sentiment after President Trump expressed no interest in extending the expiring 60-day truce with Iran. The jump in crude oil prices further increased inflation expectations and bond yields, which are bearish for stocks. The 10-year T-note yield rose by 3 basis points to 4.72%.

Despite initial support from technology stocks after strong revenue growth at Anthropic PBC, software stocks' weakness affected the Dow Jones Industrial Average. Better-than-expected US economic news, such as the Empire manufacturing survey and NAHB housing market index, provided a small boost to stocks. However, China's economy, with weaker-than-expected industrial production, retail sales, jobless rate, and falling home prices, cast doubts on global growth prospects, negatively impacting stocks.