U.S. stocks fell Monday as bond yields surged to multiyear highs and oil prices traded wildly following geopolitical turmoil, while Nvidia announced a massive $150 billion share buyback expansion.
U.S. Stocks Drop as Bond Yields and Oil Volatility Weigh on Markets
U.S. stocks opened the week on a negative note on Monday, pushed downward by a sharp jump in bond yields and erratic trading in crude oil. The S&P 500 fell 0.5% and the Nasdaq Composite dropped 0.6%, while the Dow Jones Industrial Average slid 224 points, or 0.4%, according to market reports.
The market downturn followed a weekend of escalating geopolitical headlines. President Donald Trump announced over the weekend that he had rejected a proposal from Iran to reopen the Strait of Hormuz. Markets reacted immediately to the energy supply concerns, though prices later retreated after unconfirmed reports surfaced regarding potential diplomatic talks and sanctions relief.
Treasury Yields Climb to Multiyear Highs Amid Inflation Concerns
Bond yields surged across the board on Monday, continuing a steep climb that has alarmed investors tracking central bank policy. The benchmark 10-year U.S. Treasury yield touched 5.27%, marking its highest level since mid-June 2007. Meanwhile, the yield on the 30-year bond hit its highest mark since May 2004, and the 2-year note reached a level not seen since 2024.
The relentless rise in borrowing costs reflects growing anxiety among traders anticipating further interest rate adjustments. Justin Bergner, portfolio manager at Gabelli Funds, noted that higher rates create severe imbalances across the broader financial ecosystem.
“The competition for capital with AI hyperscaler spending … also pressures the consumer with higher rates, so it kind of makes the market more one-sided than it already is.”
Justin Bergner, portfolio manager at Gabelli Funds
Nvidia Defies Tech Slump With a Massive Share Buyback Expansion
While major technology names such as Advanced Micro Devices, Micron Technology, Amazon, Microsoft, and Meta traded lower on Monday—with Meta shedding nearly 4%—Nvidia moved in the opposite direction. Nvidia stock turned higher after the company announced plans to buy back an additional $150 billion worth of its shares. The new authorization brings the chipmaker’s total share repurchasing program to a staggering $235 billion, offering a powerful cushion for its share price even as broader market sentiment soured.
Analysts note that despite the turbulence, the S&P 500 remains up a little more than 12% for the year. However, that yearly gain has been heavily concentrated in a few specific areas, with the information technology sector up 28% and energy surging 38% while other sectors lag behind.