Stocks Slip as Oil Prices Rise

U.S. stocks edged further from their record heights on Monday after rising oil prices cranked up the pressure on inflation and financial markets.

• The S&P 500 fell 40.70 points to 7,745.06, a drop of 0.5%. It nonetheless remains near its all-time high set Thursday.
• The Dow dropped 272.63 points, or 0.5%, to 7,745.06.
• The Nasdaq composite slipped 84.25, or 0.3%, to 26,644.91.

Wall Street's losses solidified in the afternoon when oil prices accelerated upward, the AP reports. The price for a barrel of Brent crude, the international standard, rose 2.7% to $90.87. It's been careening back and forth because of uncertainty about what the war with Iran will do to the global flow of crude. Monday's rally for oil prices sent Treasury yields in the bond market higher, which in turn raised the pressure on the economy and prices for all kinds of investments. The yield on the 10-year Treasury climbed to 4.72% from 4.68% late Friday. It has shot up from just 3.97% before the war with Iran, largely because higher oil prices are worsening inflation and upping the probability that the Federal Reserve will have to hike interest rates. Higher rates could keep a lid on inflation, but they do so by intentionally slowing the economy.

Trading on Wall Street was relatively quiet on Monday. L3Harris Technologies fell 4.6% after the defense company said Christopher Kubasik stepped down as its CEO and chairman following conduct "that was not consistent with the values of the Company." It gave few details but said the conduct was not related to its financial reporting, controls, customer relationships, or operational performance. Alphabet dipped 0.5% even though Berkshire Hathaway said it increased its investment in Google's parent company, along with several homebuilders. Berkshire built a reputation for buying stocks at affordable prices under its former CEO, famed investor Warren Buffett. Constellation Brands fell 6.2% after Berkshire said it sold all its holdings in the seller of Modelo beer and Robert Mondavi wine.