Stocks fall, yields jump on Fed and Iran worries
SPY•U.S. stocks fell Monday as investors weighed the prospects for an Iran peace deal and further Federal Reserve rate hikes. The Dow dropped 0.67%, the S&P 500 fell 0.77% and the Nasdaq lost 0.92%, while the 10-year Treasury yield rose to about 5.23%.
1. Stocks and yields
Wall Street fell Monday as Treasury yields reached fresh two-decade highs. The 30-year yield hit its highest level since mid-May 2004, and the 10-year yield touched its highest since mid-June 2007.
2. Fed and Iran concerns
Investors weighed prospects for an Iran peace deal against the possibility of further Fed rate hikes. Rising crude and diesel prices added to inflation concerns, while Fed officials said more hikes may be needed if price pressures do not ease after this month's 25-basis-point increase. Qatari mediators pledged to hold talks with the United States and Iran, while President Donald Trump said he had rejected an Iranian proposal to reopen the Strait of Hormuz and end the fighting.
3. Nvidia gains
Nvidia rose about 1.7% after announcing a $150 billion share buyback, its largest ever. Oil settled slightly higher, while gold fell about 3.8%.
