09.03.202613:34:55UTC+00US Stocks Decline at Week Start

US equities fell sharply to their lowest levels of the year on Monday, extending last week’s declines as the escalation of the war in Iran triggered a deeper energy shock that, if sustained, could weigh heavily on the global economy. The S&P 500, Dow Jones Industrial Average, and Nasdaq 100 each dropped more than 1%.

Saudi Arabia announced it would cut oil production, joining Kuwait, Bahrain, and the UAE, after the closure of the Strait of Hormuz halted seaborne exports and pushed storage facilities beyond full capacity. Crude oil and natural gas prices surged further, driving Treasury yields higher and reinforcing expectations that the Federal Reserve will keep interest rates elevated.

Credit- and risk-sensitive technology stocks were hit particularly hard, with Tesla, Apple, Amazon, and Meta all declining between 1% and 2%. Jefferies slid 5% after Morgan Stanley downgraded the stock, citing its exposure to defaults by First Brands and MFS, underscoring growing pessimism around the private credit sector. By contrast, oil producers extended their recent gains.