WASHINGTON (dpa-AFX) - Stocks showed a notable move to the downside during trading on Monday, giving back ground following the upward move seen over the two previous sessions. The major averages all moved lower, with the tech-heavy Nasdaq showing a significant pullback.
The Nasdaq and the S&P 500 ended the day just off their lows of the session. The Nasdaq slumped 408.43 points or 1.6 percent to 25,873.18 and the S&P 500 slid 60.05 points or 0.8 percent to 7,515.34. The narrower Dow posted a more modest loss, dipping 138.37 points or 0.3 percent to 52,498.64.
The pullback by stocks came amid a sharp increase by the price of crude oil, with U.S. crude oil futures soaring by nearly 9 percent amid the continued exchange of attacks between the U.S. and Iran.
U.S. Central Command said it completed a new wave of offensive strikes against Iran on Sunday, hitting dozens of targets at multiple locations with precision munitions.
Tehran responded by attacking Gulf Arab states, including Bahrain, Kuwait, Qatar, Jordan and Oman, further straining the fragile ceasefire between the two countries.
President Donald Trump claimed in a post on Truth Social that the crucial Strait of Hormuz remains open but said he is reinstating the U.S. blockade of Iranian ports.
Trump also said the U.S. would be reimbursed at a rate of 20 percent on all cargo shipped through the strait as the U.S. serves as the 'Guardian of the Hormuz Strait.'
The sharp increase by the price of crude oil led to renewed concerns about the outlook for inflation and the possibility of higher interest rates.
A steep drop by shares of SK Hynix (SKHY) also weighed on the tech sector, with U.S.-listed shares of the South Korean chipmaker plunging by more than 9 percent after soaring by more than 13 percent during its debut last Friday.
Semiconductor stocks saw substantial weakness amid the slump by SK Hynix, with the Philadelphia Semiconductor Index plunging by 4.8 percent.
Considerable weakness is also visible among computer hardware stocks, as reflected by the 3.3 percent slump by the NYSE Arca Computer Hardware Index.
Airline, gold and networking stocks also saw significant weakness, while energy stocks moved sharply higher along with the price of crude oil.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Monday. South Korea's Kospi nosedive by 9 percent, China's Shanghai Composite Index plunged by 2.1 percent and Japan's Nikkei 225 Index tumbled by 1.9 percent.
Meanwhile, the major European markets finished a choppy trading day slightly higher. While the U.K.'s FTSE 100 Index closed just above the unchanged line, the German DAX Index crept up by 0.2 percent and the French CAC 40 Index rose by 0.3 percent.
In the bond market, treasuries showed a notable move to the downside amid the sharp increase in crude oil prices. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 4.0 basis points to 4.609 percent.
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