The Dow Jones Industrial Average dropped 384 points as oil prices and Treasury yields jumped to start the week. Chip and AI-linked stocks led the market lower, but Nvidia rose after unveiling a $150 billion buyback boost.
Oil prices and Treasury yields jumped Monday, dragging major U.S. stock indexes lower to start the week.
The Dow Jones Industrial Average dropped 384 points, or 0.7%. The S&P 500 slid 0.8%, while the Nasdaq Composite fell 1%.
Oil and yields drove the selloff
Brent crude traded more than 2% higher at $106.79 a barrel, after President Donald Trump rejected conditions for a ceasefire presented by Iran. West Texas Intermediate futures gained around 2% to $94.40 over the same move.
Treasury yields built on last week's sharp moves. The 10-year Treasury note yield traded above 5.2%, while the 30-year bond yield topped 5.5%. Both traded near multiyear highs.
Chip stocks slide, but Nvidia bucks the trend
Several AI-linked stocks led the major indexes lower. Advanced Micro Devices and Micron Technology traded down about 5% and 4%, respectively.
Amazon edged down 1%, while Microsoft dipped 2%. Meta shed nearly 4%.
However, Nvidia bucked the trend among hyperscaler and AI stocks. The stock popped about 2% after the company said it plans to buy back an additional $150 billion of its shares, bringing its total buyback program to $235 billion.
Rate focus returns this week
Wall Street is coming off a winning week, as tech and tech-linked names outperformed. Meta rallied nearly 13% over that stretch, while Microsoft climbed more than 4%, and Apple and Nvidia each advanced more than 1%.
Rates will be back in focus this week, with a slew of key economic data on deck. The August personal consumption expenditure price index, the Fed's preferred inflation gauge, is due Wednesday. New manufacturing figures follow Thursday, and the September jobs report is set for release Friday.
Source: CNBC
Trading involves risk.
Risk Disclaimer
