U.S. stocks fall as oil surges and bond yields hit 19-year highs on Iran tensions
Markets rattled by geopolitical upheaval as mediators seek to broker U.S.-Iran talks over the war.
What to know
- U.S. stocks fell Monday (S&P 500 down 0.7%, Nasdaq down 0.9%) as oil surged above $106/barrel amid Iran geopolitical tensions and mediated U.S.-Iran peace talks.
- Treasury yields spiked to multi-decade highs—10-year yield hit 5.27%, highest since 2007—raising concerns about slowing global growth and deficits.
- Year's stock gains remain heavily concentrated in tech (+27%) and energy (+38%), while utilities, financials, and consumer discretionary sectors have contracted; Fed rate decisions loom at month's end.
“The significant increase in oil prices so far this year hasn't knocked the wind out of the global economy's sails. The question is whether rapidly rising interest rates will do so.”
Ed Yardeni, President, Yardeni Research · NBC News ↗
Donald Trump U.S. President
Abbas Araghchi Iranian foreign ministerEd Yardeni Market analyst, Yardeni Research
How it unfolded 2 developments, newest first · click a bar or a number to jump articlesposts
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Stocks fall as oil jumps on Iran geopolitical tensions
The S&P 500 ended Monday down 0.7% and Nasdaq down 0.9% as Brent crude oil rose above $106 per barrel. The moves reflect ongoing market volatility driven by geopolitical upheaval related to the Iran conflict.
“They want to make a deal, and I think that's fine. I like making a deal too, but ... that deal would not be acceptable.”
— Donald Trump, U.S. President · source -
first by NBC News, 15h ago
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Stocks fall, bond yields surge and oil fluctuates as war keeps markets on edge https://www. nbcnews.com/business/markets/s tocks-oil-bond-yields-geopolitics-rcna600284?utm_source=flipboard&utm_medium=activitypub Posted into Business @ business-thenewsdesk
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Oil prices spike then moderate as mediators plan U.S.-Iran talks
Brent crude surged beyond $108 earlier in the day but pulled back after reports that mediators planned to meet separately with U.S. and Iranian officials. Iran's ISNA news agency downplayed the talks, saying foreign minister Abbas Araghchi would attend but no U.S. representatives would be present.
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Goldman Sachs: equity gains offset by higher rates, but sector imbalance persists — Goldman Sachs analysts note financial conditions have changed little since January and that rises in interest rates have been nearly offset by higher equity prices. However, the year's gains are heavily concentrated—tech up 27% and energy up 38%—while utilities, financials, and consumer discretionary sectors have contracted.
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Market analyst warns rising interest rates risk slowing global economy — Ed Yardeni, president of Yardeni Research, acknowledged that higher oil prices have not yet damaged global growth but raised concern about the impact of rapidly rising interest rates. He noted the rates exacerbate outlooks for large government deficits worldwide.
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Treasury yields hit multi-decade highs amid rate concerns — The 10-year Treasury yield reached 5.27%, its highest since mid-June 2007, while the 30-year bond hit its highest level since May 2004. The 2-year Treasury reached its highest level since 2024, signaling market expectations for elevated central bank rates.
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Trump signals openness to Iran economic concessions amid talks — Reports emerged that Trump was open to offering Iran economic concessions to reboot negotiations, which took some pressure off oil prices. Trump told reporters he rejected Iran's recent proposal to reopen the Strait of Hormuz, saying any deal Iran wants would be unacceptable.