US stocks fall; Dow Jones sheds 550 points

US stocks closed lower on Monday, weighed down by a sharp rise in Treasury yields and renewed geopolitical concerns over the Middle East conflict.

The Dow Jones Industrial Average fell 1.15%, or 557 points, to 48,941.

The S&P 500 declined 0.40%, or 29 points, to 7,200, while the Nasdaq Composite slipped 0.20%, or 46 points, to 25,067.

In Europe, the Stoxx Europe 600 dropped 1% to 605.51 points in the first trading session of May following the Labor Day holiday.

Germany’s DAX fell 1.25% to 23,991, while France’s CAC 40 lost 1.7% to 7,976. Markets in Japan and the UK were closed.

Oil prices surged, with Brent July futures settling up 5.8%, or $6.27, at $114.44 per barrel. US crude (WTI) June futures rose 4.4%, or $4.48, to close at $106.42 per barrel.

Gold prices fell, with June futures dropping 2.4%, or $111.2, to $4,533.3 per ounce.

What’s driving markets?

Bond yields climbed alongside the sharp rise in oil prices, signaling renewed inflationary pressures. The move was largely driven by the outbreak of limited military clashes between the United States and Iran in the Strait of Hormuz, heightening market uncertainty.