Stocks fall as rising oil prices and Treasury yields squeeze markets
SPY•Major stock indexes fell on Monday as oil prices rose and Treasury yields climbed; markets implied a roughly 70% chance of a second straight Federal Reserve rate hike in October. The Dow fell 0.78%, the S&P 500 0.91% and the Nasdaq 1.13%.
1. Stocks and oil
Major stock indexes fell on Monday as oil resumed rising after U.S.-Iranian talks reached a stalemate, while Treasury yields extended their recent gains. U.S. crude rose 3.5% to $95.60 a barrel and Brent gained 3.4% to $107.86.
2. Rate expectations rise
Markets implied a roughly 70% chance of a second consecutive Federal Reserve rate hike in October. The 10-year Treasury yield rose 8.25 basis points to 5.26%, while the 30-year yield climbed 7.4 basis points to 5.576%, its highest level since mid-May 2004.
3. Nvidia gains
The Nasdaq fell 1.13%, while Nvidia shares rose about 2% after the chipmaker increased its share buyback authorization by a record $150 billion. Investors were also awaiting the September U.S. payrolls report and monthly personal consumption expenditures price index due this week.
