WASHINGTON (dpa-AFX) - After coming under pressure early in the session, stocks fluctuated but remained mostly lower over the course of the trading day on Monday. The major averages all moved to the downside on the day following the strength seen during last Friday's session.
The tech-heavy Nasdaq slumped 248.34 points or 0.9 percent to 26,820.38, the S&P 500 slid 59.72 points or 0.8 percent to 7,683.69 and the Dow fell 347.11 points or 0.7 percent to 51,481.51.
The early weakness on Wall Street came amid a significant rebound by the price of crude oil, with U.S. crude oil futures spiking by as much as 4.5 percent after tumbling by 2.3 percent during last Friday's trading.
Crude oil prices surged early in the day after President Donald Trump rejected Iran's conditional proposal for reopening the Strait of Hormuz.
Iran's proposal would have purportedly reopened the strait and resumed nuclear talks in return for the U.S. lifting its blockade of Iranian ports.
A report from the Wall Street Journal citing U.S. officials said Trump has told aides he expects to resume bombing Iran after the November midterm elections.
While the price of crude oil pulled back well off its highs of the session, treasury yields extended the recent surge.
The yield on the benchmark ten-year note jumped to its highest level since June 2007 as elevated energy prices continue to contribute to concerns about the outlook for inflation and interest rates ahead of the Federal Reserve's next monetary policy meeting late next month.
CME Group's FedWatch Tool is currently indicating a 70.3 percent chance the Fed will raise rates by another quarter point at its October meeting.
On Wednesday, the Commerce Department is scheduled to release its report on personal income and spending in the month of August, which includes the Fed's preferred inflation readings.
Sector News
Gold stocks moved sharply lower along with the price of the precious metal, with the NYSE Arca Gold Bugs Index plummeting by 5.2 percent to its lowest closing level in well over a month.
The jump in treasury yields also contributed to considerable weakness among interest rate-sensitive telecom stocks, as reflected by the 1.8 percent loss posted by the NYSE Arca North American Telecom Index.
Semiconductor, banking and oil service stocks also saw notable weakness, moving lower along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index slid by 0.7 percent, while Hong Kong's Hang Seng Index climbed by 0.5 percent.
Meanwhile, the major European markets ended the day little changed. While the French CAC 40 Index closed just above the unchanged line, the U.K.'s FTSE 100 Index and the German DAX Index both edged down by 0.1 percent.
In the bond market, treasuries moved notably lower, extending the downward trend seen over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 6.0 basis points to 5.240 percent.
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