Wall Street: The index continues to fall, oil is getting more expensive

The broad index fell 0.7%, taking it even closer to correction territory, as it is now down 9.7% from its 52-week intraday high. The decline was led by a decline in the technology sector, which fell 2%. On the other hand, sectors such as financials and utilities recorded gains. The Nasdaq Composite fell by 1.2%, while the Dow Jones Industrial Average lost 60 points, or 0.1%.

The CBOE Volatility Index, otherwise known as the gauge of fear, traded above 30 during trading.

U.S. oil prices also rose at the start of the week, with West Texas Intermediate crude futures up 3.25% to $102.88 a barrel – the highest close since July 19, 2022. Brent crude futures rose 0.13% to $112.72 a barrel and were on track for their biggest monthly gain ever with a 55% gain over the period.

Fed Chairman Powell said Monday that even with rising energy prices, he sees inflation expectations as “well anchored beyond the near term.” While he said the central bank “may eventually face the question of what to do here,” he stressed that “it’s not really facing that yet, because we don’t know what the economic effects will be.”

The yield on 10-year government bonds fell after those statements. The benchmark yield last fell by more than 9 basis points to 4.344%.

Meanwhile, President Donald Trump offered some hope to investors that the war against Iran may be nearing an end. In a post on Truth Social Monday, the president said that the US is “seriously talking with a NEW AND MORE SANE REGIME about ending our military operations in Iran,” adding that “great progress has been made,” SEEbiz reports.

However, the president also said that if a peace deal is not reached “soon” and the Strait of Hormuz reopens “immediately”, the US will “conclude its nice ‘stay’ in Iran by blowing up and completely destroying all of their power plants, oil wells and Kharg Island (and possibly all desalination plants!) that we have deliberately not yet ‘touched.’”