US stocks close lower as oil prices jump, indexes notch monthly gains
US stocks declined on Monday as oil prices surged. This jump revived inflation concerns and increased monetary policy tightening expectations. Investors processed hawkish comments from Federal Reserve Chair Kevin Warsh. Despite the day's losses, major indexes posted monthly gains for August. Financial markets anticipate a potential rate hike at September's meeting.
U.S. stocks closed lower on Monday as oil prices soared, reigniting fears of inflation and potential tighter monetary policy. The S&P 500 slipped 27.39 points, Nasdaq dropped 41.51 points, while the Dow Jones Industrial Average fell 380.22 points. Benchmark U.S. Treasury yields rose as investors digested remarks from Federal Reserve Chair Kevin Warsh.
Despite March's volatility, all three major indexes still posted monthly gains. Warsh's hawkish tone heightened the odds of a rate hike in September, according to Peter Tuz, president of Chase Investment Counsel. Iran's President Masoud Pezeshkian reiterated his country's desire for a negotiated settlement to the ongoing war, while the U.S. sanctions further strained relations.
In the S&P 500's 11 major sectors, energy shares saw solid gains, buoyed by the spike in crude prices. PG&E, a utility, experienced its largest percentage loss in over six years.
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