Wall Street Wobbles: Rising Treasury Yields and Mid-East Tensions Dent U.S. Stock Indexes

U.S. stock indexes fell due to rising Treasury yields and Middle East tensions. The Nasdaq, S&P 500, and Dow Jones each saw declines. The volatile climate follows rising Treasury yields surpassing 4%, impacting investor faith in Fed rate cuts. Energy stocks saw slight gains amidst geopolitical concern.

U.S. stock indexes experienced a downturn on Monday, driven by surging Treasury yields and escalating tensions in the Middle East. Investors recalibrated their expectations for Federal Reserve rate cuts, leading to market hesitancy.

The yield on the benchmark 10-year Treasury note rose above 4% for the first time in two months as investors revisited the Fed's anticipated rate path. The CME's FedWatch tool indicated investors are factoring in an over 88% chance of a 25 basis point rate cut at the Fed's November meeting.

Shares in rate-sensitive megacap growth stocks, such as Alphabet, Microsoft, and Amazon, took a hit amidst these developments, while tensions in the Middle East, coupled with a rise in crude prices, further dampened investor mood.

(With inputs from agencies.)