US stock indices closed lower on Monday amid concerns that elevated oil prices will fuel inflation as hopes for a deal to end the war in the Middle East faded. The S&P 500 fell 0.5%, the Nasdaq lost 0.2% and the Dow shed 273 points. Prospects for peace suffered a setback, with fighting flaring anew and rhetoric escalating. Oil prices rose, rasing concerns that inflation could prompt the Fed to raise rates before the year is over. The 30-year Treasury yield hit its highest level since 2007, reflecting concerns over surging government spending. Credit-sensitive stocks, including financials and hyperscalers, closed lower. Google lost 0.6%, Microsoft was down 3% and Meta shed 3.5%. Berkshire Hathaway lost 1.1%, Visa shed 1.5% and Amex retreated 1.8%. Meanwhile, chipmakers posted gains after strong revenue growth from Anthropic. The company is meeting with banks over a potential IPO, which could be the biggest on record. Micron added 4.1%, Intel gained 1% and Sandisk soared 9%.