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(RTTNews) - After showing a lack of direction early in the session, stocks moved mostly lower over the course of the trading day on Monday. The major averages all moved to the downside on the day, with the Dow showing a notable decline.
The Dow slumped 557.37 points or 1.1 percent to 48,941.90, the S&P 500 fell 29.37 points or 0.4 percent to 7,200.75 and the Nasdaq dipped 46.64 points or 0.2 percent to 25,067.80.
The weakness that emerged on Wall Street came amid a substantial increase by the price of crude oil, with U.S. crude oil futures surging by more than 3 percent.
Crude oil prices spiked after a social media post from the United Arab Emirates's Defense Ministry said four cruise missiles launched from Iran were detected toward various areas across the country.
"Three were successfully engaged over the country's territorial waters, while one fell in the sea," the post continued. "The Ministry of Defense affirmed that the sounds heard in different parts of the country are a result of air defence systems engaging threats."
A report from Reuters indicating a fire broke out at a major oil industry zone in the U.A.E. following an Iranian drone attack also added to concerns about a re-escalation of the Middle East conflict.
Over the weekend, President Donald Trump said he would be reviewing a new peace proposal from Iran but said he "can't imagine that it would be acceptable."
"They have not yet paid a big enough price for what they have done to Humanity, and the World, over the last 47 years," Trump said of Iran in a post on Truth Social.
Trump said in a separate post that the U.S. would soon begin helping to "free" ships from countries not involved with the Middle East dispute that are stranded due to the closure of the Strait of Hormuz.
"If, in any way, this Humanitarian process is interfered with, that interference will, unfortunately, have to be dealt with forcefully," Trump said.
The news of the president's plan comes amid reports Iran's Navy has blocked "American-Zionist" warships from entering the Strait of Hormuz.
Iranian state media also claimed the Islamic Revolutionary Guard Corps hit a U.S. warship with two missiles, although U.S. Central Command denied the report and said, "No U.S. Navy ships have been struck."
Transportation stocks showed a substantial move to the downside on the day, resulting in a 4.8 percent nosedive by the Dow Jones Transportation Average.
Significant weakness also emerged among housing stocks, with the Philadelphia Housing Sector Index plunging by 3.4 percent.
Banking, steel and gold stocks also came under pressure over the course of the session, while oil producer and biotechnology stocks turned in strong performances.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday, with markets in Japan and mainland China closed for holidays. South Korea's Kospi spiked by 5.1 percent, while Hong Kong's Hang Seng Index shot up by 1.2 percent.
Meanwhile, most European stocks moved to the downside on the day. With the U.K. markets closed for a holiday, the German DAX Index slumped by 1.2 percent and the French CAC 40 Index tumbled by 1.7 percent.
In the bond market, treasuries pulled back sharply following the rebound seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 6.8 basis points to 4.446 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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