U.S. stocks fell on Monday as renewed Middle East tensions and another sharp rise in Treasury yields put Wall Street on the defensive. The Dow Jones Industrial Average dropped about 0.4%, while the S&P 500 declined 0.6% and the Nasdaq Composite fell roughly 0.6%.
The pullback kicked off a busy week for markets, with investors preparing for key inflation and labor data while monitoring renewed U.S.-Iran negotiations. The 10-year Treasury yield climbed to around 5.25%, its highest level since 2007, while the 30-year yield reached roughly 5.57%, adding fresh pressure to equities.
Market Movers:
- Kodiak Sciences (KOD) +158%: Shares more than doubled after both Zenkuda and tabirafusp-ted met their primary endpoints in a Phase 3 study of patients with wet age-related macular degeneration. Kodiak plans to submit Zenkuda data from five positive Phase 3 trials to regulators in the fourth quarter and expects to file a biologics license application later this year.
- Kandi Technologies (KNDI) +8%: Shares jumped after the company’s China Battery Exchange subsidiary secured a second equipment order from CATL subsidiary QIJI Energy for heavy-truck battery swap stations. The deal follows a three-year strategic cooperation agreement, while Kandi’s battery exchange facility has an annual production capacity of up to 200 stations.
- Nvidia (NVDA) +3%: Shares climbed after Nvidia added $150 billion to its share repurchase authorization, bringing its remaining buyback capacity to roughly $235 billion. The AI chip leader also unveiled new tools aimed at improving the security and control of autonomous AI agents, helping the stock buck broader semiconductor weakness.
- NIO (NIO) +2%: Shares rose after Zhejiang Geely Holding agreed to acquire a 30% stake in NIO’s battery-swapping business in a transaction valuing the unit at roughly $2.4 billion. The companies are also discussing wider adoption of NIO’s battery-swapping technology across Geely vehicles.
- MongoDB (MDB) -20%: Shares plunged after CEO Chirantan “CJ” Desai stepped down to join Meta as chief enterprise platform officer. Former MongoDB CEO Dev Ittycheria will return as interim president and CEO while the company searches for a permanent replacement, with its fiscal 2027 guidance remaining unchanged.
- Gold Fields (GFI) -12%: Shares tumbled after Northern Star Resources rejected Gold Fields’ roughly $27 billion takeover proposal, arguing that it materially undervalued the Australian gold miner. Northern Star’s board unanimously rejected the cash-and-stock offer after changes in Gold Fields’ share price reduced the implied value of the proposal.
Treasury Yields Surge Again
The bond selloff intensified Monday, with the 10-year Treasury yield rising roughly 9 basis points to 5.25% and the 30-year yield climbing toward 5.6%. The two-year yield also approached 5% as investors continued to price in the possibility of additional Federal Reserve tightening. Higher yields have become one of Wall Street’s biggest headwinds, increasing borrowing costs while making government bonds more competitive with stocks. The pressure is particularly visible in housing, where mortgage rates around 7.5% are weighing on homebuilders and home-improvement retailers.
Oil and Iran Return to Focus
Geopolitical risk also returned to the forefront after the Trump administration rejected Iran’s latest proposal addressing the conflict and reopening the Strait of Hormuz. Qatar is continuing mediation efforts, with separate discussions involving U.S. and Iranian officials expected as early as Monday or Tuesday.
The possibility of further negotiations remains, but uncertainty around Hormuz has kept energy markets volatile. Elevated oil prices remain particularly important for investors because another sustained increase could reinforce inflation pressures just as markets are debating how much further the Fed may need to tighten.
A Big Week for Economic Data
Investors now face a packed economic calendar that could quickly reshape expectations for interest rates. The Fed’s preferred PCE inflation gauge arrives Wednesday, followed by Friday’s September jobs report. Corporate earnings will also remain in focus, with Micron and Nike among the major companies scheduled to report this week. Expectations for third-quarter earnings have held up relatively well even as higher interest rates have pushed the S&P 500’s forward valuation closer to its long-term average.
Looking Ahead
Treasury yields, oil prices and economic data are likely to dominate the next several sessions. A hotter inflation reading or unexpectedly strong jobs report could reinforce expectations for additional Fed tightening and keep pressure on yields upward. Investors will also be watching for developments in U.S.-Iran diplomacy and the Strait of Hormuz. With the 10-year yield already above 5.2%, any renewed surge in energy prices could make an already challenging inflation backdrop even harder for Wall Street to ignore.