02:11 PM EDT, 10/07/2024 (MT Newswires) -- US benchmark equity indexes were lower while oil prices were surging intraday amid persistent uncertainty around the geopolitical situation in the Middle East.

The Dow Jones Industrial Average was down 0.6% at 42,091.9 after midday Monday, while the S&P 500 and the Nasdaq Composite fell 0.5% each to 5,723.4 and 18,045.2, respectively. Among sectors, utilities and consumer discretionary saw the steepest declines. Only energy and technology were in the green.

West Texas Intermediate crude oil gained 3.6% to $77.08 a barrel, while Brent topped $80. The increase was driven by "fears of a wider Middle East conflict and potential disruption to exports from the major oil-producing region," D.A. Davidson said in a note to clients.

Official data are likely to show Thursday that US consumer inflation rose 0.1% sequentially and 2.3% annually last month, according to a Bloomberg-compiled consensus.

The US producer prices report for September is scheduled to be released Friday.

The US two-year yield rose four basis points to 3.97% intraday, while the 10-year rate added 3.5 basis points to 4.01%.

On Friday, data from the Bureau of Labor Statistics showed the economy added more jobs than expected in September, while the unemployment rate edged down.

"A significantly stronger-than-expected employment report not only calls into question the (Federal Reserve's) latest outsized rate cut decision in September, but also the size of additional rate cuts needed going forward," Stifel said in a Monday note to clients.

Last month, the central bank's Federal Open Market Committee reduced its benchmark lending rate by 50 basis points versus a Bloomberg-compiled consensus indicating a 25-basis-point cut.

In company news, Deckers Outdoor ( DECK ) shares were down 4.9%, among the steepest drops on the S&P 500, as Seaport Global downgraded the stock to neutral from buy.

Constellation Brands' ( STZ ) share price is expected to stay range-bound amid tepid beer volumes that are driving a slower pace of growth, BofA Securities said. The company's shares were 1.9% lower.

Super Micro Computer ( SMCI ) shares jumped nearly 14%, the best performer on the S&P 500 and the Nasdaq, after the company said it recently deployed more than 100,000 graphics processing units in one quarter.

Gold was down 0.1% at $2,665.10 per troy ounce, while silver dropped 1.1% to $32.02 per ounce.