US stocks fall as bond yields jump, oil prices rise

Wall Street stocks retreated on Monday as oil prices advanced on the lack of progress on opening the Strait of Hormuz and a jump in US Treasury yields discouraged equity purchases. Oil prices added to their recent gains as the United States and Iran showed no signs of reaching a deal to reopen the Strait of Hormuz after nearly six months of war, even though Monday was in theory the day a US-Iran…

news.rthk.hk ·1h ago

On Monday, US stocks fell as oil prices surged and bond yields rose, due to a lack of progress in reopening the Strait of Hormuz and concerns over high inflation. The United States and Iran failed to reach an agreement to open the strategic waterway, despite it being the day the US-Iran ceasefire expired. President Donald Trump threatened to bomb Oman if it obstructed a deal.

Oil prices surged over two percent, while 30-year US Treasury bond yields hit 5.31 percent, their highest since June 2007. Analysts believe soaring Treasury yields indicate markets expect high inflation, necessitating high yields to offset a growing US deficit. Low trading volumes, attributed to summer vacations, may have amplified the market's downward trend.

All major US indices ended lower, with the S&P 500 down 0.5 percent. The European Central Bank warned of potential stock market corrections in Europe due to AI-driven equities, suggesting a US pullback in AI stocks could negatively impact the EU's sentiment, financing conditions, and hiring.

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