NEW YORK: Major US stock indices dipped early Monday as oil prices continued to climb and US Treasury yields rose amid the Russian war on Ukraine.
Comments from Baltic states favoring an embargo on Russian oil and gas helped push crude prices further above $100 a barrel, while Kremlin spokesman Dmitry Peskov warned an oil embargo “is a decision that will hit everyone.”
Meanwhile, the yield on the 10-year US Treasury note advanced further above two percent as markets digest the Federal Reserve’s decision last week to lift interest rates.
Fed Chair Jerome Powell was due to speak later today at a conference of economists. Powell has signaled additional interest rate hikes this year to counter inflation.
US stocks dip as oil prices resume upward push
About 20 minutes into trading, the Dow Jones Industrial Average was down 0.2 percent at 34,674.10.
The broad-based S&P 500 was flat at 4,463.11, while the tech-rich Nasdaq Composite Index dropped 0.5 percent to 13,826.71.
Stocks are coming off a strong week, with the S&P 500 piling on more than six percent amid bargain hunting and positive trading momentum.
Among individual companies, Boeing slumped six percent after a Boeing 737-800 operated by China Eastern crashed in China, killing 132 people.
The catastrophe comes as the American plane maker was poised to resume deliveries of the 737 MAX, a different plane, following a lengthy grounding.
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