Wall St declines as oil spikes after Trump rejects Iran peace proposal

On Monday, Wall Street's major indexes experienced a decline following President Donald Trump's rejection of Iran's peace proposal, causing crude prices to surge and reigniting concerns about inflation. The situation prompted an increase in Treasury yields. Despite this negative market sentiment, Nvidia managed to buck the trend with a 2.1 percent gain following the announcement of a $150 billion share repurchase authorization, marking the company's largest ever share buyback on record.

Iran had proposed peace at the recent United Nations General Assembly in New York, with the offer relayed to the United States through Qatari mediators. President Trump admitted on Saturday that he had rejected the proposal, but later told Axios on Sunday that he anticipated U.S. negotiators to continue discussions during the week. The jump in crude prices by 3 percent, bringing them to approximately $107-a-barrel, negatively impacted Treasuries and pushed longer-dated yields to fresh multi-decade highs.

Inflation has consistently been a driving force behind rising energy prices, and any factors that continue to pressure inflation are likely to motivate the Federal Reserve to raise interest rates. Art Hogan, the chief market strategist at B. Riley Wealth Management, expressed this sentiment.