Nasdaq futures experienced a significant decline while Treasury yields rose sharply as oil prices exceeded $100 a barrel on Monday. This development has raised concerns among investors regarding the potential impact of the ongoing conflict in Iran on the U.S. economy. Futures for the Dow Jones Industrial Average experienced a decline of 1.1%, while both S&P 500 and Nasdaq 100 futures saw a decrease of 1.0% in the latest trading session. Major stock indexes experienced a decline for the second consecutive week on Friday, with the Dow falling by 3% over the course of the five days, marking its most significant weekly drop since last April. The S&P 500 concluded the week with a decline of 2%, whereas the Nasdaq recorded a decrease of 1.2%.

Oil futures have experienced a significant increase following the military strikes by the U.S. and Israel against Iran on February 28. West Texas Intermediate crude futures, serving as the U.S. benchmark, surged by as much as 35% last week, marking their largest weekly gain since trading commenced in 1983. This surge is attributed to the near cessation of tanker traffic through the Strait of Hormuz. WTI futures surged an additional 12% to exceed $102 a barrel on Monday, coinciding with discussions among finance ministers from the Group of Seven advanced economies regarding the potential release of strategic reserves to mitigate the supply crunch. They were last above the $100-a-barrel threshold in June 2022, shortly after Russia’s invasion of Ukraine. Shares of U.S. carriers Delta Air Lines, United Airlines Holdings, and American Airlines Group—whose fuel expenses are their biggest aside from labor—pulled back 2% to 4% before the bell, while those of cruise operators Norwegian Cruise Line Holdings, Carnival, and Royal Caribbean Group similarly retreated. The share performance of the Magnificent Seven tech giants also indicated a downward trend.

The yield on the 10-year Treasury note, a critical determinant of interest rates across various consumer loans, increased to 4.18% from Friday’s closing figure of 4.13%, driven by concerns that the rise in oil prices may precipitate stagflation. On Friday, the U.S. unemployment rate increased to 4.4%, contrary to expectations of remaining at 4.3%. Chicago Fed President Austan Goolsbee remarked that an oil-price shock combined with a persistent rise in the unemployment rate would result in “exactly the kind of stagflationary environment that’s as uncomfortable as any that faces a central bank,” as reported. The U.S. Dollar Index, which monitors the value of the greenback relative to a selection of currencies, registered an increase of 0.3% at 99.27, as the currency experienced a notable appreciation against the euro, yen, and pound. Gold futures declined by 1.2%, settling at $5,100 per ounce, whereas silver futures experienced a 1% decrease, priced at $83.45 per ounce. Bitcoin was trading at approximately 67,600, an increase from the overnight lows of about 65,600.

Hims & Hers Health shares skyrocketed more than 40% in premarket trading following a report from Bloomberg, which cited a source familiar with the matter, indicating that the company and Novo Nordisk were poised to announce an agreement for the compounding pharmacy to sell the Danish firm’s weight-loss drugs on the Hims platform. Shares of Novo Nordisk listed in the U.S., which initiated legal action against Hims & Hers last month for marketing a copycat version of its new Wegovy weight-loss pill, experienced a 1% increase. Live Nation Entertainment stock surged 7% on a Bloomberg report indicating that it is nearing a settlement with the U.S. Department of Justice that would not require it to divest Ticketmaster. Shares of Hewlett Packard Enterprise, Vail Resorts, and Casey’s General Stores all experienced a decline of 1% to 2% in anticipation of their quarterly results following the market’s closure.