Rising crude prices and Treasury yields drove a broad decline in equities, with the S&P 500 falling 0.52% after hitting record highs last week.
US stock indices closed lower as rising oil prices and higher Treasury yields pressured investor sentiment. The S&P 500 dropped 40.37 points, or 0.52%, to 7,745.38, while the Dow fell 272.03 points, or 0.51%, to 53,465.36. The Nasdaq Composite declined 0.32%, and the Nasdaq 100 held up better with a 0.17% loss.
The pullback followed a record high for the S&P 500 last week, leaving markets vulnerable to profit-taking. WTI crude oil climbed over 2% amid supply concerns linked to geopolitical tensions in the Strait of Hormuz. Energy stocks outperformed, rising 0.87%, while communication services and consumer staples led declines, falling 1.47% and 1.46%, respectively.
AI and chip-related stocks bucked the trend, with Sandisk (SNDK) surging 8.88% after an investor day last week. Credo Technology (CRDO) and Coherent (COHR) also posted strong gains, rising 8.87% and 7.79% respectively.