Investors are eyeing key labor, inflation and growth data alongside Micron’s earnings later this week.
- U.S. Treasury yields moved higher as selling pressure returned to global government bond markets.
- Crude oil prices jumped after President Donald Trump rejected Iran’s conditions to reopen the Strait of Hormuz.
- Oil futures are nearly 50% above their level before the war started in late February.
U.S. stocks fell on Monday as Treasury yields continued to climb higher and higher crude oil prices pressured sentiment.
As of this writing, the Dow was down about 360 points while the S&P 500 fell 0.49% and the Nasdaq Composite slid 0.50%.
According to an Oppenheimer analyst cited in a CNBC report, recent volatility in oil prices and interest rates suggests markets are on a path toward a new normal rather than heightened volatility and significant downside risk.
Treasury Yields Edge Higher
U.S. Treasury yields moved higher Monday as selling pressure returned to global government bond markets amid rising oil prices and renewed inflation concerns. The benchmark 10-year Treasury yield, which influences borrowing costs including mortgages and other consumer loans, rose more than 3 basis points to 5.219%.
The 30-year Treasury yield climbed about 2 basis points to 5.529%, while the 2-year Treasury yield gained more than 5 basis points to 4.916%.
The benchmark 10-year Treasury yield had climbed on Thursday to its highest level since June 2007 before pulling back, while the 30-year Treasury yield reached its highest level since 2004.
The SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down around 0.33%; the Invesco QQQ Trust ETF (QQQ) fell 0.61%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) fell 0.56%.
Crude Price Rises on US-Iran Stalemate
Crude oil prices jumped amid a stalemate in U.S.-Iranian talks after President Donald Trump rejected Iran’s conditions for reopening the Strait of Hormuz, claiming Tehran was desperate to make a deal.
As of this writing, Brent crude futures maturing in November traded at $108.27 a barrel, up more than%, while WTI crude futures maturing in November traded at $95.46 a barrel, up 3.2%.
Oil futures are nearly 50% above their level before the war started in late February, while refined product prices have surged even more, according to Reuters.
Investors Await Economic Data, Key Earnings Report
Investors are also looking ahead to a busy week of U.S. economic data. August’s Job Openings and Labor Turnover Survey, due Tuesday, is expected to show job openings easing to about 7.23 million from 7.27 million in July.
Wednesday brings the latest reading on the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) index, alongside the third estimate of second-quarter gross domestic product (GDP). The September jobs report, released Friday, includes nonfarm payrolls and the unemployment rate.
On the earnings front, Micron Technology (MU) is set to report fiscal fourth-quarter (Q4) results Wednesday, putting memory-chip demand and the AI trade in focus, while Nike (NKE) is scheduled to release fiscal first-quarter (Q1) results Thursday.
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