U.S. stocks started the week on a down note following the latest setback for peace talks in the Middle East and a deepening of last week's selloff in U.S. Treasurys.
The S&P 500 fell 59.7 points, or 0.77%, to 7683.69. The Dow Jones Industrial Average dropped 347.1 points, or 0.67%, to 51481.51. The Nasdaq Composite was down 248.3 points, or 0.92%, to 26820.38.
Treasury yields posted a fresh round of multiyear highs.
The 10-year U.S. Treasury yield climbed to 5.241%, inching higher to levels not seen since 2007, while the 30-year Treasury yield hit 5.561%, its highest rate since 2002. The two-year U.S. Treasury yield rose to 4.922%, a level last seen in May 2024.
An early rally in oil prices and gains in yields of U.S. Treasurys eased from highs hit earlier in the day on reports that Saudi Arabia's flagship oil company, Saudi Aramco, started loading vessels at the Red Sea port of Yanbu via the pipeline. The pipeline was previously closed after being hit by drone strikes earlier this month.
International benchmark Brent crude closed up 0.9% to $105.28 a barrel, giving up a bigger 3% gain notched after President Trump rejected an Iranian proposal for a seven-day ceasefire that would have reopened the Strait of Hormuz. Trump told aides that he expects another U.S. bombing campaign against Iran after the midterm elections in November, according to The Wall Street Journal.
A strengthening dollar pressured gold futures, which fell $150.80, or 3.5%, to $4135.40 a troy ounce for their biggest single-day decline since June. Gold has fallen in five of the past six sessions.
Chipmaker Nvidia raised its buyback program by $150 billion, bringing the total buyback authorization to $235 billion, lifting its stock by 1.7% to $228.86. The authorization eclipses the $110 billion stock buyback that Apple unveiled in May 2024 and comes just four months after Nvidia's board added $80 billion to the buyback program.
Research leaders at Meta Platforms and Microsoft joined OpenAI and Anthropic in calling for Washington to investigate artificial-intelligence systems that are able to autonomously self-improve. Meta shares fell 4.8% to $715.62 and Microsoft shares slid 1.3% to $509.22.
Shares of MongoDB fell 18% after the database company said its president and CEO had stepped down to lead a new business segment at Meta Platforms.
SpaceX's Starship entered orbit for the first time and deployed the latest version of its Starlink satellites, critical steps in the company's push for the experimental rocket to handle a range of missions.