S&P 500, Dow, Nasdaq waver as inflation fears grip markets


US stocks flip-flopped on Monday as worries about war-stoked inflation buffeted investors as they kicked off a week dominated by Nvidia (NVDA) earnings.

The S&P 500 (^GSPC) fell roughly 0.1%, while the Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) both traded just below the flat line. All three major indexes initially turned green at the opening bell.

Leading corporate news on Monday is the announcement of a tie-up between NextEra Energy (NEE) and Dominion Energy (D) in a $66.8 billion all-stock transaction. If the deal goes through, it will create the largest energy utility in the country.

In the bond market, the 10-year Treasury yield (^TNX) briefly climbed above 4.6% at one point early Monday before pulling back to below the key milestone. Long-dated US yields also backed off highs as a global bond rout lost steam.

At the same time, a rally in oil prices helped stoke the inflation jitters behind the bond sell-off and the pullback in US stocks from record highs. Brent crude futures (BZ=F) topped $110 a barrel as the US and Iran remained far from a peace deal, underscored by a drone attack on a UAE nuclear power plant.

Investors will get insight into the impact of inflation on consumer spending this week in earnings reports from a host of retailers, led by Target (TGT) and Walmart (WMT) on Wednesday and Thursday, respectively.

But the marquee quarterly report comes from Nvidia, which will put a key driver of the US stock market — the artificial intelligence boom — under the microscope when the chipmaker’s results land on Wednesday.

LIVE 6 updates

  • US stocks wobble at the open

    The US stock market wavered on Monday as investors looked ahead to Nvidia (NVDA) earnings, while renewed tensions in the Middle East kept nerves hot.

    The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) were both down about 0.2%, while the Nasdaq Composite (^IXIC) rose 0.1%.

    Stoking fears, the 10-year Treasury yield (^TNX) briefly ticked over 4.6% at one point early Monday before easing. Renewed Middle East tensions over the weekend sent international oil (BZ=F) prices back over $110 per barrel after drone attacks against an Emirati nuclear power plant and new threats from President Trump.

    Nvidia earnings on Wednesday lead the corporate calendar, with other major reports from Target (TGT) and Walmart (WMT) on Wednesday and Thursday, respectively.

    In the power sector, NextEra Energy (NEE) and Dominion Energy (D) on Monday announced a $66.8 billion all-stock deal that, if it goes through, will create the largest energy utility in the country.

  • UnitedHealth Group stock slides after Berkshire Hathaway exits position in the health insurer

    Yahoo Finance’s Ines Ferre reports:

    UnitedHealth Group (UNH) stock dropped more than 3% in premarket trading on Monday. Berkshire Hathaway (BRK-A, BRK-B) disclosed that it no longer holds a position in the health insurer. Berkshire said it sold its entire stake of more than 5 million UnitedHealth shares in the last quarter.

    In a 13F filing detailing holdings as of March 31, the first released under Berkshire CEO and Warren Buffett’s successor Greg Abel, the conglomerate also showed it increased its stake in Alphabet (GOOGL, GOOG) and exited its Amazon (AMZN) investment.

    Read more here.

  • Dominion stock jumps on potential tie-up with NextEra Energy

    Dominion Energy (D) stock jumped 13% in premarket trading after the Financial Times first reported that the utility company is in talks to be acquired by NextEra Energy (NEE) as soon as today.

    A tie-up between Virginia-based Dominion and Florida-based NextEra would create one of the biggest US electricity providers and mark one of the largest deals of all time, requiring the government’s approval, according to the FT.

    It comes as the artificial intelligence build-out has created booming demand for electricity for data centers.

    NextEra (NEE) stock fell 2% in premarket trade.

  • Nvidia, bond yields, and the next commodity supercycle: What to watch this week

    Nvidia (NVDA) quarterly results on Wednesday will dominate the week, notes Yahoo Finance’s Jake Conley .

    He writes:

    By far the standout event of the week will be Nvidia’s earnings report on Wednesday. The company’s earnings have consistently been a bellwether for not only the semiconductor industry but the AI and Big Tech trade more broadly.

    But even as Nvidia crossed the $5.7 trillion mark this week, UBS analyst Tim Arcuri noted that investors have been somewhat wary through recent months, setting expectations likely only to be satisfied by an absolutely stellar report.

    … Meanwhile, the market might just be at the start of the next commodity supercycle, according to energy strategist Jeff Currie of Carlyle Group.

    In a thread posted to X Friday morning, Currie laid out a multi-pronged argument for why the market is right at the beginning of the next years-long rally cycle for commodities that he called “the most asymmetric trade in modern financial history.”

    … “The opportunity exists because capital has chased the AI trade while ignoring the physical assets AI requires to run — assets that have quietly become the best-performing asset class of the decade,” Currie wrote.

    Read more here.

  • Global bond losses leads to yield reaching decade high

    Reuters reports:

    Bonds from Tokyo to New York extended losses on Monday as rising energy prices from the ongoing Middle East war fanned inflation fears and stoked investor wagers on rate hikes from global central banks.

    Benchmark 10-year U.S. Treasury yields, which move ‌inversely to prices, jumped to their highest since February 2025 at 4.631%, having climbed more than 20 basis points last week.

    The two-year yield, ‌which is most sensitive to inflation and rates expectations, touched a 14-month top of 4.102%, while the 30-year U.S. Treasury yield rose to a one-year high of 5.159%.

    The rising yields lifted the U.S. dollar ​and cast a shadow over stock markets that have surged on the AI enthusiasm of recent weeks.[MKTS/GLOB][FRX/]

    The bond selloff came on the back of a climb in oil prices on Monday, with Brent crude futures at $111 a barrel, as efforts to end the Iran war appeared to have stalled following a drone strike at a nuclear power plant in the United Arab Emirates.

    Read more here.

  • Oil prices push higher for third consecutive day on Iran war disruption

    Bloomberg reports:

    Oil rose for a third day as President Donald Trump again pressured Iran to come to a deal to end weeks of war and reopen the crucial Strait of Hormuz.

    Brent (BZ=F) advanced above $110 a barrel, after adding almost 8% last week, while West Texas Intermediate (CL=F) rose toward $107. Trump posted on social media Sunday that “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!”

    Oil has risen more than 50% since the US and Israel first attacked Iran at the end of February, with subdued flows through the Strait of Hormuz crimping supply from Persian Gulf producers. The market is in “a race against time” as the factors that restrained price rises from the war stand to come under strain if the vital waterway stays closed into June, Morgan Stanley said last week.

    Further pressure on supply came as the Trump administration let a waiver for Russian crude sales lapse. That came despite a request by India to extend the measure.

    Energy facilities were targeted in the Persian Gulf over the weekend, with an attack by drones sparking a fire at a United Arab Emirates nuclear facility and underscoring the fragility of the ceasefire.

    Read more here.



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