Stocks drop after oil prices and bond yields crank higher

U.S. stocks fell Monday as oil prices climbed and bond yields moved higher, pulling markets further from recent record highs. The S&P 500 dropped 0.6%, the Dow Jones Industrial Average fell 222 points (0.4%) and the Nasdaq slipped 0.6%. Trading was pressured after Brent crude’s most actively traded contract briefly rose above $100 per barrel before settling at $97.61, up 0.2%. Oil’s volatility reflects uncertainty about whether Iran will allow tankers through the Strait of Hormuz after President Donald Trump rejected Iran’s weekend offer to reopen the strait and resume nuclear talks. The move in energy worsened inflation: AAA put regular gasoline near $4.48 a gallon versus $3.13 a year ago. Treasury yields rose, with the 10-year jumping to 5.24% from 5.17% and the 30-year reaching 5.56%. Airline shares fell alongside gold, which weakened after its price dropped 3.9%.