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S&P 500 slips as surging crude lifts inflation and yields
WTI crude jumped more than 5% on Monday, pushing the 10-year Treasury yield up 5 basis points to 4.70%.
U.S. stock indices ended lower on Monday as higher crude oil prices fed into inflation worries and pressured Treasury yields, according to Yahoo Finance. The S&P 500 closed down 0.06%, the Dow Jones Industrial Average fell 0.11%, and the Nasdaq 100 declined 0.34.
The market pressure was tied to a rise in oil prices, with WTI crude surging more than 5% during the session. That move pushed the 10-year T-note yield up by 5 basis points to 4.70%, while September E-mini S&P and Nasdaq futures also fell.
Further weighing on sentiment were hawkish comments from Cleveland Fed President Beth Hammack, who said she is not seeing a problem with the job market and that inflation is not coming down on its own. She added that the current interest rate is not meaningfully restricting the economy and suggested rate hikes would likely be needed to bring down inflation.
Losses were partially limited by strength in energy providers, software stocks, and cybersecurity companies. Yahoo Finance also pointed to support for equities from optimism around AI spending after Taiwan Semiconductor Manufacturing Co. reported July sales up 45% year over year, and JPMorgan Chase raised its year-end S&P 500 target to 8,000 from 7,800.
Latest closeWTI crude $83.42 ▲1.6%|S&P 500 7,728.20 ▼0.3%|Nasdaq Comp. 26,445.45 ▼0.6%