U.S. stocks fell on Monday, posting back-to-back losses as the 10-year Treasury yield reached a 19-year high and crude oil climbed above $106 a barrel.
Key facts
- The major averages closed lower on Monday, according to CNBC.
- The 10-year Treasury yield hit a 19-year high.
- Crude oil topped $106 a barrel.
- Stocks posted back-to-back losses.
- Higher bond yields and oil prices kept the market under pressure.
The major U.S. stock averages closed lower on Monday as a combination of higher bond yields and rising oil prices kept the market under pressure, according to CNBC.
The move marked back-to-back losses for stocks, CNBC reported, as investors contended with pressure from both the bond and commodity markets.
A key driver was the 10-year Treasury yield, which hit a 19-year high. Rising yields can increase borrowing costs across the economy and often weigh on equities, particularly growth-oriented shares.
At the same time, crude oil surged, topping $106 a barrel. Higher oil prices can add to inflationary pressure and raise costs for businesses and consumers alike.
Together, these two factors combined to keep the market under pressure through the session, CNBC reported, leaving the major averages in the red at the close.
Why it matters
Rising Treasury yields and higher oil prices can raise borrowing and energy costs for households and businesses, and both put pressure on stock prices. The 10-year yield reaching a 19-year high is a notable milestone that reflects broader shifts in the cost of money.
Frequently asked questions
Why did stocks fall on Monday?
According to CNBC, the major averages closed lower because higher bond yields and rising oil prices kept the market under pressure.
How high did the 10-year Treasury yield go?
CNBC reported that the 10-year Treasury yield hit a 19-year high.
What happened to oil prices?
Crude oil topped $106 a barrel, according to CNBC.