U.S. stocks fell on Monday as oil surged ahead of a pivotal Federal Reserve meeting later this week, while Treasury yields remained high and technology shares weakened.
Crude oil rose to $109 per barrel, reigniting concerns that inflation could prove sticky. Diesel prices are also trading above an all-time high of $6 per gallon.
Yields on Treasuries stayed elevated. The 10-year yield sat just a few basis points below the 5% threshold, while the 2-year note reached 4.64%, reflecting market pricing that suggests investors expect the central bank to raise rates further.
Betting markets showed strong conviction: Polymarket prices implied an 80% probability that the Fed will deliver a rate increase on Wednesday.
In equities, the technology sector suffered the most visible damage. The XLK exchange-traded fund, which tracks large-cap tech, declined more than 2%, with Nvidia leading the semiconductor complex lower.
The selloff followed a joint statement from Anthropic and OpenAI acknowledging the need to slow the pace of artificial-intelligence development, citing risks to humanity. Both companies have recently issued public warnings about the dangers of unregulated AI advancement.
Other names drawing investor attention included AMD, Sandisk, and Nebius Group, Yahoo Finance reported as among the stocks readers viewed most closely that morning.
