The Dow Jones Industrial Average dropped 237 points on Monday as a jump in oil prices and Treasury yields weighed on stocks. Nvidia was the exception, rising after unveiling a $150 billion buyback expansion, while chip and AI names broadly sold off.
The Dow Jones Industrial Average dropped 237 points, or 0.5%, on Monday. The S&P 500 slid 0.4%, while the Nasdaq Composite fell 0.5%.
Oil and yields drive the pullback
Brent crude traded more than 2% higher at $106.79 a barrel, while West Texas Intermediate futures gained around 2% to $94.40. The move came after President Donald Trump rejected conditions for a ceasefire proposed by Iran.
According to CNBC: "They made a proposal but I rejected it."
Treasury yields built on last week's sharp moves. The 10-year Treasury note yield traded above 5.2%, and the 30-year bond yield topped 5.5%, both around multiyear highs. Traders are increasing bets on further rate hikes from the Federal Reserve because of persistent inflation pressure.
AI stocks split, Nvidia bucks the trend
Several AI stocks led the major indexes lower. Advanced Micro Devices and Micron Technology traded down about 3% and 2%, respectively, while Amazon edged down 1% and Microsoft dipped 2%. Meta shed nearly 4% on the day.
However, Nvidia moved against the trend. The stock popped more than 3% after the company said it would buy back an additional $150 billion of its shares, bringing its total buyback program to $235 billion.
Wall Street is coming off a winning week even so, as tech names outperformed. Meta rallied nearly 13% last week, while Microsoft climbed more than 4% and Apple and Nvidia each advanced more than 1%.
A data-heavy week ahead
Rates will stay in focus this week. The August personal consumption expenditures price index, the Fed's preferred inflation gauge, is due Wednesday, with manufacturing data set for Thursday and the September jobs report due Friday.
Source: US Top News and Analysis
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