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Oct 7 - U.S. stock indexes fell on Monday while Treasury yields rose, as traders tamped down bets for Federal Reserve interest-rate easing.
The change in rate-cut expectations caused U.S. Treasury yields to rally, with the yield on benchmark 10-year notes exceeding 4% for the first time in two months. Demmert noted the intensifying Middle East conflict as a concern for U.S. investors who are worried about the war's economic impact, including rising oil prices.
Among the S&P 500's 11 major industry indexes, only energy , advanced, rising 0.5%. U.S. crude futures rose for the fifth-straight session on concerns about Middle East supply disruptions.The CBOE Volatility index , Wall Street's fear gauge, hit its highest level in a month.
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