New york: US stocks closed lower on Monday as escalating tensions between the US and Iran pushed oil prices higher, fueling concerns that renewed energy inflation could keep interest rates elevated. The Dow Jones Industrial Average lost 272.63 points, or 0.51 percent, to finish at 53,459.78. The S and P 500 fell 0.52 percent to 7,745.06, while the Nasdaq Composite declined 0.32 percent to 26,644.91.
According to Philippines News Agency, markets came under pressure as the ceasefire framework between Washington and Tehran expired Monday without an extension, while negotiations between the two sides remained stalled. Oil prices rose sharply amid uncertainty surrounding the conflict and traffic through the Strait of Hormuz, a key route for global energy supplies. International benchmark Brent crude climbed about 2.7 percent to USD90.87 per barrel, while US benchmark West Texas Intermediate gained 2.6 percent to USD84.50.
Higher energy prices also weighed on the bond market. The yield on the 10-year US Treasury note rose more than 3 basis points to 4.728 percent, while the 30-year yield reached its highest level since June 2007. Gold gained 0.9 percent to USD4,415.30 per ounce as investors turned toward safe haven assets. The VIX volatility index, also known as the 'fear index,' jumped 6.6 percent to 15.19.
Chipmaker Micron Technology bucked the broader decline, rising around 4.1 percent, while Nvidia and Broadcom also gained amid continued optimism over artificial intelligence-related demand. Investors will now focus on minutes from the Federal Reserve's latest policy meeting, due Wednesday, for clues about the interest rate outlook.
European stock markets also closed mostly lower Monday as rising energy prices and government bond yields weighed on investor sentiment. The pan-European Stoxx Europe 600 index fell 0.22 percent to 656.40 points, while the euro area's blue-chip Euro Stoxx 50 dropped 0.19 percent to 6,529.90. The UK's FTSE 100 lost 0.28 percent to 10,720.30, extending its losing streak to six sessions, while Germany's DAX 40 fell 0.38 percent to 26,338.61. France's CAC 40 dropped 0.66 percent to 8,579.70, and Spain's IBEX 35 declined 0.87 percent to 19,981.90. Italy's FTSE MIB was nearly flat at 53,543.02.
