US stocks dropped sharply on Monday, with the Dow Jones falling nearly 400 points, as rising oil prices and Treasury yields weighed on investor sentiment. The S&P 500 and Nasdaq also closed lower.
The Dow Jones Industrial Average fell by 398.51 points, or 0.94%, closing at 41,954.24 on Monday, as rising oil prices and higher Treasury yields dampened market sentiment. The S&P 500 slid 0.96% to 5,695.94, while the Nasdaq Composite dropped 1.18%, ending the day at 17,923.90.
The 10-year Treasury yield rose by over 4 basis points to 4.02%, marking its first rise above 4% since August. Meanwhile, oil prices surged over 3%, with US crude settling above $77 per barrel, driven by ongoing tensions in the Middle East.
These moves follow a turbulent week where stocks managed modest gains. The S&P 500 rose 0.2%, the Nasdaq added 0.1%, and the Dow edged up by 0.1%.
Energy stocks, up 0.4%, were the only S&P 500 sector to close higher, while utilities and consumer discretionary sectors lagged, both down around 2%.
Looking ahead, investors are eyeing key releases such as the Federal Reserve meeting minutes on Wednesday and the consumer price index report on Thursday. Earnings reports from Delta Air Lines and JPMorgan Chase are also expected later in the week.