Wall Street Slides Under Pressure from Oil Prices and Bond Yields

Broad Decline Across Wall Street

• Indices pull back : US markets started the week lower. The S&P 500 fell 0.52% to 7,745.06 points, the Nasdaq Composite slipped 0.32% to 26,644.91 points, and the Dow Jones dropped 0.51% (-272.63 points) to 53,459.78 points.
• Tensions in oil and yields : Selling pressure was driven primarily by rising crude oil prices amid renewed tensions between the US and Iran, alongside another uptick in Treasury yields.

Sector Divergence: Tech Drags, Energy Outperforms

• Pressure on tech and discretionary : Technology and consumer discretionary sectors weighed heavily on the broader market. Within the Dow Jones, Microsoft dropped -3.04%, while Nike (-4.03%) and Walt Disney (-3.14%) registered the steepest declines of the session.
• Commodity support : Conversely, energy and materials stocks benefited from higher oil prices. Caterpillar led the Dow Jones higher at +2.93%, followed by Chevron (+1.35%) and Goldman Sachs (+1.14%).

Key Drivers to Watch Today

• Yields and geopolitics : The trajectory of bond yields and geopolitical developments between the US and Iran remain the central catalysts to watch, driving short-term volatility on ES and NQ futures contracts.