The ‘three‑headed monster’ of rising bond yields, oil prices, and a stronger dollar kept market sentiment in check on Monday. Dow Jones ended down 350 points, tumbling to around 33,000.
The S&P 500 slid 0.8% to roughly 4,500, while the Nasdaq Composite fell 0.9% to about 12,200. The Nasdaq 100, heavy with chip names, was down 1.1% to 13,800, its lowest level in ten sessions.
Bond yields surged, with the 10‑year Treasury hitting 5.25%—its highest in 19 years—while the 30‑year leapt to 5.57%, the steepest since 2004. The 2‑year yield climbed to 4.95%, feeding a view that the Fed may raise rates three times over the next year.
Oil prices spiked to $108 a barrel amid a partial resumption of the East‑West pipeline at Yanbu, then fell back to $106 after Bloomberg reported 50% capacity restoration.
Market chatter about President Trump’s willingness to grant Iran concessions was short‑lived; the brief rally was quickly taken off by the ‘three‑headed monster’ and the day’s low.
Investors are now eyeing next week’s U.S. consumer confidence data and JOLTS job openings, while analysts expect the Fed to keep the policy hawkish for the foreseeable future.