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Stocks fell to start the week as U.S. oil topped $100 a barrel, raising concerns about a stagflationary environment for the U.S. economy of rising inflation and slowing growth.
The Dow Jones Industrials came off its lows of the morning, but still lost 414.74 points to 47,086.81. The 30-stock index is coming off its biggest weekly slide in nearly a year.
The S&P 500 index was off 32.3 points to 6,707.72.
The NASDAQ dipped 24.25 points to 22,090.93.
The broader market was helped off its lows by a rise in semiconductor stocks, however. Broadcom jumped more than 3%, while Micron Technology and Advanced Micro Devices gained almost 2% each. Nvidia climbed more than 1%.
West Texas Intermediate crude broke above $100 per barrel in overnight trading to hit more than $119, its first time above the $100 level since 2022, when investors were reacting to the aftermath of Russia’s invasion of Ukraine. It was last up 6% at around $96 a barrel. International benchmark Brent crude added 7% to $99 a barrel. U.S. oil prices began the year below $60 a barrel.
U.S. President Trump posted Sunday evening that a gain in “short term oil prices” was a “very small price to pay” for destroying Iran’s nuclear threat.
The war showed little signs of easing despite Trump’s claim it was “already won” with Iran naming Ayatollah Khamenei’s son, Mojtaba, as its new supreme leader, according to reports.
Prices for the 10-year Treasury sat back, nudging yields up to 4.13% from Friday’s 4.15%. Treasury prices and yields move in opposite directions.
Oil prices skyrocketed $5.53 to $96.43 U.S. a barrel.
Gold prices slumbered $52.30 to $5,106.40 U.S. an ounce.
