Dow falls 344 points as rising yields pressure tech stocks

• Major indexes fell: Dow down 0.66% to 51,484.84, S&P 500 down 0.76% to 7,684.41, and Nasdaq down 0.91% to 26,822.09, driven by oil-related inflation concerns and rising borrowing costs
• Fed rate hike odds surged to 70.3% for October from 57.6% a week earlier and 17.7% a month earlier, with investors awaiting Wednesday's PCE inflation data and Friday's jobs report
• Tech stocks diverged: AMD fell 4%, Micron 2%, Amazon and Microsoft each 1%, while Nvidia rose on its $150 billion buyback announcement, bringing total authorization to $235 billion

Market Summary: Dow Falls 344 Points on Yield Pressures

Key Market Movements

U.S. equities declined Monday with the Dow Jones Industrial Average falling 343.78 points (-0.66%) to 51,484.84. The S&P 500 dropped 0.76% to 7,684.41, while the Nasdaq Composite fell 0.91% to 26,822.09.

Primary Market Drivers

Rising oil prices and Treasury yields pressured stocks amid uncertainty surrounding potential U.S.-Iran peace negotiations. The benchmark 10-year Treasury yield climbed above 5.2%, while the 30-year yield exceeded 5.5%—both trading near multiyear highs. Crude prices initially surged after President Trump rejected an Iranian peace proposal, though reports of continued diplomatic openness helped moderate gains.

Sector and Stock Performance

Technology stocks faced broad selling pressure, with AMD down 4%, Micron falling 2%, and Amazon and Microsoft each declining 1%. Nvidia bucked the trend, rising after announcing an additional $150 billion share buyback program, bringing total authorization to $235 billion.

Boeing shares fell following reports of potential merger discussions. Tesla also declined amid the broader tech selloff.

Federal Reserve Outlook

Fed rate hike expectations intensified, with CME FedWatch showing 70.3% probability of a 25-basis-point increase at the October meeting, up sharply from 57.6% a week earlier and 17.7% a month prior. Fed Governor Lisa Cook cited AI-related demand and elevated oil prices as continued inflationary pressures.

Upcoming Catalysts

Key economic data releases this week include Wednesday's August PCE price index (the Fed's preferred inflation gauge), Thursday's manufacturing data, and Friday's September jobs report—all critical for assessing monetary policy trajectory.