Stock futures fell early Monday, weighed down by a jump in oil prices and Treasury yields to start the week. Dow Jones Industrial Average futures dropped 242 points, or 0.5%. S&P 500 futures lost 0.5%. Nasdaq-100 futures were 1% lower. Wall Street is coming off a winning week after tech and tech-linked names outperformed. Meta Platforms rallied nearly 13% in that time, as traders cheered the company’s Muse artificial intelligence agent. Microsoft climbed more than 4%, while Apple and Nvidia advanced more than 1% each. Those gains came even as Treasury yields raced to highs not seen in years, with traders increasing bets of more Federal Reserve rate hikes due to persistent inflation. The benchmark 10-year Treasury note yield scaled to a level not seen since 2007. The 30-year bond yield reached a 2004 high. The 2-year note yield also jumped around 17 basis points last week. “The rapid rise in 2-year government note yields worldwide signals that major central banks need to raise their policy rates further in response to the inflationary impact of higher-for-longer oil prices resulting from the recent re-escalation of the Middle East war,” wrote Ed Yardeni, president of Yardeni Research. “Unfortunately, these higher rates also exacerbate the outlook for large government deficits worldwide.” Rates will be in focus again this week, with a slew of key economic data on deck. The August personal consumption expenditure price index, the Fed’s preferred inflation gauge, is due out Wednesday. New U.S. manufacturing numbers are due Thursday, while the closely watched September jobs report is set for release Friday. U.S. Treasury yields edged higher on Monday as pressure on global government bonds resumed, amid higher oil prices and inflation fears. The 10-year U.S. Treasury note yield—the key benchmark for mortgage borrowing, auto loans, and credit card debt—was up more than 3 basis points at 5.219%. The longer-dated 30-year Treasury bond yield, which is more sensitive to geopolitical risks, was 2 basis points higher at 5.529%. The 2-year Treasury note yield, which tends to react in line with short-term Federal Reserve interest rate decisions, moved up by more than 5 basis points to 4.916%. In Asia, Japan’s Nikkei 225 closed 0.73% lower, while South Korea’s Kospi declined 2.7% to 6,889.74. Australia’s benchmark S&P/ASX 200 rose 0.17%. Mainland China’s CSI 300 closed 2.22% lower. Oil prices jumped on Monday after U.S. President Donald Trump rejected an Iranian peace proposal aimed at ending the Middle East conflict and reopening the strategically vital Strait of Hormuz. International benchmark Brent crude futures with November expiry traded 4% higher at $108.48 per barrel at 11:35 a.m. London time (6:35 a.m. ET), notching its highest level since Sept. 15, while U.S. West Texas Intermediate futures with November expiry rose 4% to $96.16. It comes shortly after Trump turned down Iran’s conditional offer to reopen the Strait of Hormuz and told aides he expects U.S. strikes on the country to resume after November’s midterm elections, The Wall Street Journal reported Saturday, citing unnamed U.S. officials. Investors retreated from precious metals on Monday, with gold and silver prices moving sharply lower as markets continue to weigh the prospect of further Federal Reserve rate hikes. Gold futures dipped 3.1% on Monday to $4,188.10, while spot gold prices were 3.05% lower at $4,155.55 shortly after 4:00 a.m. E.T. Silver, meanwhile, fell further. Silver futures tumbled 5.22% to $61.42 per troy ounce, and spot silver shed 4.87% to $61.15.