The 10-year Treasury yield, the benchmark for global borrowing costs, climbed to its highest level since February 2025 earlier in the session as continued worries about the disruption of oil supplies stoked concerns that high inflation would keep borrowing costs elevated. U.S. crude settled up ‌more than 3% after ⁠a ⁠volatile session. Oil pared gains after settlement when U.S. President Donald Trump posted on social media that he was holding off on a planned military attack on Iran scheduled for Tuesday, ​while efforts continued to reach a deal. But he added the United States was ready to resume attacks in the absence of a deal.

“It seems ​like the one issue that’s been moving markets on a day-to-day basis is oil prices. The main variable is the blockade on the Strait of Hormuz that pushes oil higher and increases the risk in the longer run of inflation expectations becoming unanchored. That lifts Treasury ​yields,” said Burns McKinney, portfolio manager at NFJ Investment Group in Dallas, adding that higher ⁠yields are “particularly bad ‌for long-duration stocks, like the tech sector and a lot of the high-flying chip stocks.”

RALLY PAUSE

The Nasdaq posted ​its second straight ​decline as investors took a break from a rally that started in late March. The S&P closed Thursday’s ⁠session up more than 18% from its March 30 finish, which was its lowest ​close since the Iran war began in late February. In the same timeframe, the Nasdaq gained ​28% as enthusiasm about artificial intelligence and solid technology earnings helped investors look past inflationary threats.

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“There’s concern about the rally we’ve had in a short period of time, and there’s some profit taking,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
According to preliminary data, the S&P 500 lost 4.90 points, or 0.07%, to end at 7,403.60 points, while the Nasdaq Composite lost 135.79 points, or 0.52%, to 26,089.35. The Dow Jones Industrial Average rose 159.52 points, or 0.33%, to 49,688.25.The heavyweight information technology sector led declines among the S&P ‌500’s 11 major industry sectors with chip stocks among the biggest drags. Energy was the biggest sector gainer during the session.

Traders are pricing in a 37.8% chance that the U.S. Federal Reserve will raise interest rates by ​25 basis points ​by year-end, according to CME’s FedWatch tool, ⁠after last week’s hotter-than-expected inflation readings.

NVIDIA RESULTS IN FOCUS

The world’s most valuable company, Nvidia, is scheduled to report results on Wednesday.

Expectations are high for the company, whose shares have risen sharply from a March low, while the Philadelphia SE Semiconductor Index has surged this year on ​strong demand for AI-related chips.

Walmart, the world’s largest retailer, is also expected to report earnings this week, which could offer a clearer picture of how U.S. consumers are coping with high energy prices and broader inflation.

Dominion Energy shares jumped after power firm NextEra Energy said it would buy the utility in an all-stock deal valued at about $66.8 billion. NextEra’s shares fell. Shares of Regeneron tumbled as the drugmaker’s experimental treatment missed the main goal in a late-stage trial in patients with advanced melanoma, a type of skin cancer.