U.S. stock indexes closed lower Monday as renewed fighting in the Middle East and fading hopes for a deal to end the war drove oil prices higher, adding to investor concern that inflation could stay elevated and prompt the Federal Reserve to raise interest rates again before year-end. The S&P 500 fell 0.5%, the Nasdaq lost 0.2%, and the Dow Jones Industrial Average dropped 273 points. The 30-year Treasury yield climbed to its highest level since 2007, underscoring worries about inflation and surging government spending. Credit-sensitive stocks, including financial firms and large technology companies, came under pressure, with Google down 0.6%, Microsoft off 3%, Meta falling 3.5%, Berkshire Hathaway losing 1.1%, Visa shedding 1.5%, and Amex retreating 1.8%. Chipmakers outperformed after strong revenue growth from Anthropic supported sentiment around the sector and as the company held talks with banks on a potential IPO, which could be the biggest on record. Micron rose 4.1%, Intel gained 1%, and Sandisk surged 9%.