Dow, S&P 500 Log Lowest Close Since Early 2021

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Last week's selloff paled in comparison to the bloodbath on Wall Street today. All three major indexes logged their fourth-straight loss, with the Dow, in particular, shedding 876 points to close at its lowest level since February 2021. The S&P 500 closed in the bear market territory and at its lowest level since March 2021, while the Nasdaq fell to levels not seen since November 2020. Session lows for stocks occurred in the wake of a Wall Street Journal report that said the Federal Reserve is "likely to consider" a 75-basis point interest rate hike later this week, much steeper than the initially expected 25-basis point hike. 

A sharp rise in the 10-year Treasury yield -- the biggest jump since March 2020 -- demolished the tech sector as well. In addition, the 2-year Treasury yield briefly crossed the 10-year rate earlier, forming a yield curve inversion that may be indicative of a recession. Meanwhile, the Cboe Volatility Index (VIX) recorded its best single-day percentage gain since May.

The Dow Jones Average (DJI -  30,516.74) dropped 876 points, or 2.8%, for the day. McDonald's (MCD) was the only gainer, adding 0.5%. Boeing (BA), meanwhile, paced the laggards with an 8.8% drop.

The S&P 500 Index (SPX - 3,749.63) shed 151.2 points or 3.9% for the day. Meanwhile, the Nasdaq Composite (IXIC - 10,809.23) lost 530.8 points or 4.7% for the session.

Lastly, the Cboe Market Volatility Index (VIX - 34.02) added 6.3 points or 22.6% for the day.

There were no earnings reports of note today.

Tightening Supply Boosts Oil Prices

Oil prices settled cautiously higher on Monday, reversing earlier losses to snap a two-day losing streak. Traders ultimately brushed off inflation and demand concerns amid another rise in Covid-19 cases in China. However, Libya's political protests have nearly led to a halt in production, tightening supplies by over one million barrels per day. July-dated crude added 26 cents, or 0.2%, to settle at $120.93 per barrel.

Meanwhile, gold prices fell to close at their lowest level in more than three weeks. The yellow metal suffered as U.S. Treasury yields continued to move higher, and the U.S. dollar gained strength. In turn, August-dated gold shed 2.3%, or $43.70, to close at $1,831.80 an ounce.