Stock market today: US indexes decline on concerns of Israel-Iran tensions and rising Treasury yields

US stocks fell on Monday due to concerns over Israel-Iran conflict escalation. Retail sales surged, but Treasury yield hit highest level of 2024.

US stocks experienced a significant decline on Monday, driven by investor concerns regarding a potential escalation of the Israel-Iran conflict. The market sentiment shifted to a risk-off approach, leading to a spike in the 10-Year Treasury yield, reaching its highest level in 2024. Despite this geopolitical tension, March retail sales data exceeded expectations, with a growth of 0.7%, more than double the consensus estimates of 0.3%.

The day saw a reversal of morning gains in US stocks as worries about the Israel-Iran conflict intensified. Iran launched a barrage of missiles and drones towards Israel, but the defense system, with the help of its allies, managed to intercept most of the projectiles. However, the situation remains precarious, with ongoing back-and-forth headlines causing uncertainty in the market.

There are concerns that Israel may retaliate against Iran, potentially leading to further escalation of the conflict. Allies of Israel have urged caution to prevent a worsening of the situation. Meanwhile, the strong retail sales data, combined with the geopolitical tensions, pushed the 10-year Treasury yield to its highest level since November.

At the closing bell on Monday, the US indexes showed the following numbers:

- S&P 500: 5,061.82, down 1.2%
- Dow Jones Industrial Average: 37,735.11, down 0.7% (-248 points)
- Nasdaq Composite: 15,885.02, down 1.8%

In other news, experts warned that a premature interest rate cut by the Fed could lead to a 20% spike in the average US home price to a record $500,000. Trump Media and Technology Group saw a nearly 20% drop in shares after filing with the SEC to sell millions of shares. Goldman Sachs reported its highest quarterly profit since 2021, while a sheet of uncut dollar bills signed by Warren Buffett fetched $20,740 at an auction. Tesla stock fell 5% following layoffs and weak EV demand.

In commodities, bonds, and crypto:

- West Texas Intermediate crude oil dropped to $85.50 a barrel.
- Brent crude fell to $90.21 a barrel.
- Gold rose to $2,398.80 per ounce.
- The 10-year Treasury yield climbed to 4.62%.
- Bitcoin declined to $63,506.

Overall, the market experienced a tumultuous day, with geopolitical tensions and economic data driving investor sentiment and market movements.

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