U.S. Stocks Retreat as Treasury Yields Surge and Oil Prices Climb

U.S. stocks slid on Monday, as markets reacted to a surge in Treasury yields and continued increases in oil prices. These developments sent major stock indexes lower, despite some U.S. stocks remaining near their recent highs.

U.S. stocks like those in the S&P 500, Dow Jones Industrial Average, and Nasdaq composite felt the pressure of rising yields. The S&P 500 dropped 1%, though it remains close to its all-time high set last week. Meanwhile, the Dow Jones fell 0.9% from the record it reached on Friday, and the tech-heavy Nasdaq declined 1.2%.

U.S. Stocks React to Treasury Yields and Oil Prices

The pressure on U.S. stocks came as Treasury yields hit their highest levels since the summer, forcing investors to reassess their expectations about future interest rate cuts by the Federal Reserve.

The recent jobs report, which showed stronger-than-expected employment figures, added to the uncertainty surrounding future rate reductions. In addition, rising crude oil prices, which continued their upward trajectory from the previous week, weighed on the market.
Here’s a closer look at how major indexes performed on Monday:
• The S&P 500 fell 55.13 points, or 1%, to 5,695.94.
• The Dow Jones Industrial Average dropped 398.51 points, or 0.9%, to 41,954.24.
• The Nasdaq composite lost 213.95 points, or 1.2%, to 17,923.90.
• The Russell 2000 index, which tracks smaller companies, slid 19.71 points, or 0.9%, to 2,193.09.

For the year, however, U.S. stocks have remained resilient. The S&P 500 is up 19.4%, while the Dow has gained 11.3%. The Nasdaq has surged by 19.4%, and the Russell 2000 has advanced 8.2%. Despite Monday’s pullback, U.S. stocks remain in a strong position overall.

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