Dow Jones, S&P 500 fall amid rising oil prices; Scholar Rock jumps 300%, Apple and insurance stocks dip

US stocks struggled on Monday, pulling back after gains in the previous session as rising oil prices and higher interest rates dampened market sentiment.

The Dow Jones Industrial Average dropped 441 points, or 1%, while the S&P 500 fell 1%, and the Nasdaq Composite lost 1.1%.

The 10-year Treasury yield climbed nearly 5 basis points to 4.028%, marking its first rise above 4% since August.

Meanwhile, oil prices surged as ongoing tensions in the Middle East pushed US crude up 3.5% to over $77 per barrel.

Monday’s decline followed a turbulent week where stocks saw modest gains.

The S&P 500 edged up 0.2%, the Nasdaq Composite rose by 0.1%, and the Dow increased by 0.1%.

Scholar Rock surges 300% 

Shares of Scholar Rock Holding Corp jumped more than 300% on Monday after the clinical-stage biotech company said a late-stage trial of a treatment for spinal muscular atrophy met its main target. 

The phase three trial of the experimental drug showed significant improvement in motor function as measured by the  Hammersmith Functional Motor Scale Expanded, or HFMSE, the gold standard scale for the disorder, versus placebo, according to a report by Market Watch. 

If the gains hold, this could be Scholar Rock’s biggest one-day stock increase. 

Meanwhile, shares of backup power generation companies surged on Monday as Hurricane Milton rapidly strengthened into a Category 4 storm. 

Shares of Generac Holdings surged nearly 9%, while those of NextEra Energy Inc dropped 2.7% on Monday. 

Energy stocks' rally continues

US Energy stocks surged on Monday as rising crude oil prices boosted their performance. 

Shares of Crescent Energy rallied 3% on Monday, and those of Chevron Corporation rose nearly 1%. 

Exxon Mobil Corporation’s stock also rose 1% on Monday. 

Insurance companies bear the brunt of Hurricane Milton

Insurance stocks with weather catastrophe exposure fell on Monday as Milton approaches Florida. 

According to the US National Hurricane Center, Hurricane Milton is forecast to hit Florida by Friday. 

Shares of Allstate Corp fell more than 4%, while Travelers Companies Inc's shares dropped nearly 4%.

Chubb Ltd’s stock also fell 4% on Monday. 

Universal Insurance plunged more than 26% as the catastrophe-prone carrier with Gulf Coast exposure could see heightened hurricane risks.

Apple’s stock in red after downgrade

Shares of Apple fell on Monday after Jefferies downgraded the stock, arguing that the anticipated sales of iPhones are too high, according to news reports. 

The bank cut Apple's rating to "hold" from "buy," although it raised its price target to $212.92 from $205.00, Yahoo Finance said in a report. 

Shares of Apple Inc fell more than 1% on Monday. 

Brent prices breach $80/barrel first time since August

Brent crude oil prices continued their surge on Monday as rising geopolitical tensions in the Middle East raised fears about supply or the commodity from the region. 

Reports suggest that Israel is likely to target Iran’s oil facilities in response to Tehran’s attack last week.

Additionally, the US is reportedly going to back Israel in its attack. 

On Monday morning, rockets were fired by Iran-backed Hezbollah towards Israel’s Haifa in fresh escalations of tensions in the region. 

Brent prices breached $80 per barrel for the first time since August 30 on Monday.

Prices have surged more than 3% to extend its gains from last week. 

West Texas Intermediate crude oil prices were up by 3.4% at $76.93, its highest level in over a month.