Highlights
Major stock indexes slipped Monday as oil prices and bond yields rose on the return of war in the Persian Gulf. The Dow Jones industrials eased 0.3 percent while the S&P 500 lost 0.8 percent and the Nasdaq was off 1.6 percent. Bond yields, oil prices, and the dollar all rose.
Escalating military confrontation between the US and Iran and President Trump’s statement that the gulf is now closed sent oil prices surging more than 5 percent and reawakened inflation fears. Rising bond yields in turn his stocks and other risk assets and added to expectations that the Federal Reserve will be obliged to raise interest rates soon. Hawkish comments from Fed Governor Chris Waller added to the dim market view.
Momentum stocks, especially chipmakers and the AI trade, led the losers alongside big technology plus big banks, airlines, homebuilders, and aerospace & defense. Holding up best were energy, road & rail, discount retailers, and managed care.