Yields in the U.S. Treasury market climbed Monday, reaching levels not seen in roughly two decades, as concerns over inflation, federal debt, and economic resilience put additional pressure on U.S. equities. The jump in bond yields contributed to a decline in major U.S. stock indexes, moving them further from record highs achieved last week.

The Standard & Poor’s 500 index fell 0.8%, losing 59.72 points to close at 7,683.69, reversing much of its recent gains. The Dow Jones Industrial Average dropped 347.11 points, or 0.7%, to 51,481.51, while the Nasdaq composite fell 0.9%, shedding 248.34 points to finish at 26,820.38.

The yield on the 10-year Treasury note briefly surpassed 5.27% before settling back to 5.23%, up from 5.17% late Friday. This level corresponds with yield ranges last seen in 2007 prior to the financial crisis and the Great Recession. The 30-year Treasury yield also increased, rising to 5.55% from 5.49%, matching levels not seen since 2004.

The rise in Treasury yields reflects a combination of factors, including ongoing inflation worries, a significant U.S. debt burden, and indicators that the American economy remains relatively robust despite numerous challenges. Higher yields generally increase borrowing costs, which can dampen economic growth and reduce the appeal of stocks relative to fixed-income investments.

Adding volatility to markets were swings in oil prices tied to geopolitical uncertainty in the Middle East, specifically the ongoing conflict with Iran. Oil tankers’ ability to navigate the Strait of Hormuz—a key transit point for Middle Eastern oil exports—remains uncertain amid hostilities. Over the weekend, President Donald Trump rejected an Iranian offer to reopen the strait and resume nuclear negotiations, stating the deal was unacceptable.

Brent crude prices briefly traded above $101 per barrel Monday morning before easing to settle at $97.83, up 0.4%. Despite fluctuations, oil prices remain significantly higher than the roughly $72 per barrel level recorded before the U.S. and Israel launched attacks on Iran earlier this year. Elevated oil costs have contributed to rising inflation, pushing the national average price for a gallon of regular gasoline to nearly $4.48, up from $3.13 a year ago.

Stocks in sectors sensitive to fuel costs, including airlines, declined as a result. American Airlines and United Airlines shares dropped 2.5% and 2.2%, respectively. Gold miners also faced losses amid a 3.5% decline in gold prices. While gold is traditionally viewed as an inflation hedge, it tends to weaken when rising bond yields offer investors higher returns. Newmont, a major mining company based in Denver, saw its stock fall 4.4%.

One of the largest individual stock declines came from database company MongoDB, which plummeted 18.5% following the announcement that CEO Chirantan “CJ” Desai was stepping down immediately to join Meta Platforms in a senior role. These losses offset gains in other high-profile stocks, including Nvidia, which rose 1.7%. The chipmaker benefitted from its board’s approval of an additional $150 billion share buyback plan, boosting the program’s remaining authorization to $235 billion. Nvidia’s strong cash position has been supported by demand for its artificial-intelligence chips. The company also introduced a new security platform aimed at preventing AI agents from behaving unpredictably, addressing growing concerns about the pace and safety of AI development.

International markets showed mixed results, with European indexes displaying varied performance after weaker trading sessions in Asia. Major Asian markets saw declines, with indexes in Seoul and Shanghai falling 2.7% and 1.7%, respectively.