Market Jitters: Inflation Concerns Weigh on Nasdaq Amid Rising Treasury Yields and Oil Prices

The Nasdaq closed lower on Monday as investors reacted to soaring Treasury yields and high oil prices, leading to concerns about persistent inflation. The 10-year Treasury yield hit a new high, influenced by oil supply disruptions. The tech sector faced significant declines, while energy stocks gained ground.

The Nasdaq composite index experienced a decline on Monday, catalyzed by investor profit-taking amid soaring Treasury yields and surging oil prices. These factors have intensified worries that inflation and borrowing costs could remain high.

The 10-year Treasury yield, a key global borrowing cost indicator, reached its highest level since February 2025. Concerns over oil supply disruptions have fueled speculation that inflation could persist, thereby keeping borrowing costs elevated. U.S. crude oil saw a substantial rise, over 3%, after a day marked by price fluctuations. The energy market calmed somewhat following President Donald Trump's social media announcement about delaying military plans against Iran, while negotiations continued for a peaceful resolution.

Nasdaq marked its second consecutive decline after a rally initiated in late March. Both the Nasdaq and S&P 500 have shown significant gains since March, partly due to optimistic forecasts for AI and technology sector earnings. Despite this, caution among investors about the rapid market ascent is apparent, with speculation on interest rate hikes by the Federal Reserve intensifying.