Stocks edge lower on Wall Street as crude oil prices slump

A trader, right, talks to a pedestrian outside the New York Stock exchange, Jan. 14, 2022, in the Financial District. Stocks are off to a mixed start on Wall Street Monday, March 28, 2022 as gains for some big technology companies are offset by weakness in energy stocks as crude oil prices fall sharply. The S&P 500 was moving between small gains and losses in the early going. The Dow Jones Industrial Average was off 0.4% and the tech-heavy Nasdaq added 0.8%. (AP Photo/Mary Altaffer, file)

Stocks turned lower in afternoon trading on Wall Street Monday as crude oil prices slumped and bond yields eased lower.

The S&P 500 fell 0.4% as of 12:27 p.m. Eastern. The Dow Jones Industrial Average fell 271 points, or 0.8%, to 34,591 and the Nasdaq fell 0.3%.

Technology stocks were among the biggest weights on the market. Companies in the sector tend to push and pull the broader market more forcefully because of their pricey valuations. Chipmaker Intel fell 2.2%.

Energy companies had some of the biggest losses as crude oil prices fell sharply. Exxon Mobil fell 2.6%.

U.S. crude oil slumped 5.2% and Brent crude, the international standard, fell 5%. The drop follows news that China began its most extensive coronavirus lockdown in two years to conduct mass testing and control a growing outbreak in Shanghai. That could put a dent in global demand for energy.

Oil prices remain volatile amid the backdrop of Russia's invasion of Ukraine. The United Arab Emirates’ energy minister doubled down Monday on an oil alliance with Russia, saying that nation, with its 10 million barrels of oil a day, is an important member of the global OPEC+ energy alliance.

Ukraine and Russia are due to hold talks early this week in Turkey.

Oil prices are up more than 40% globally over concerns about tighter supplies as demand remains strong. Higher oil prices are also raising concerns that already persistently high inflation could be worsened, further threatening global economic growth.

Markets in Europe were mostly higher, while markets in Asia were mixed.

Russian shares slumped as its stock market resumed trading of all companies after a monthlong halt following the invasion of Ukraine. The last full trading session in Moscow was on Feb. 25, a day after the index tumbled by a third after President Vladimir Putin ordered the invasion.

Bond yields eased back after shooting higher this month. The yield on the 10-year Treasury fell to 2.45% from 2.49% late Friday. Bond yields have been rising as Wall Street prepares for higher interest rates. The Federal Reserve has already announced a 0.25% hike of its key benchmark interest rate and is prepared to continue raising rates to help temper the impacts of rising inflation.

Investors will get more updates this week on just how much inflation is hurting consumers and businesses. The Conference Board will release its consumer confidence index for March on Tuesday. The Commerce Department will release its February report for personal income and spending on Thursday and the Labor Department will release its employment report for March on Friday.

Company-specific news helped lift several stocks on an otherwise quiet day as the latest quarter nears its close and Wall Street prepares for the next round of corporate earnings. Tesla rose 6.6% after saying it is considering another stock split. Plantronics jumped 50.1% after HP said it will buy the headset maker.