* Major stock indices slump, with the fear index VIX surging by over 10%;

* U.S. Treasury yields rise, with the benchmark 10-year U.S. Treasury note breaking through 4.60%;

* Apple falls by over 2%, as research institutions report a decline of about 10% in Q1 smartphone shipments.

On Monday, U.S. stocks plummeted across the board, with better-than-expected U.S. retail sales data pushing up U.S. Treasury yields and market concerns over potential Israeli retaliation for Iran's previous airstrikes. By the close, the Dow Jones Industrial Average fell 248.13 points, or 0.65%, to 37,735.11, the Nasdaq Composite dropped 1.79% to 15,885.02, and the S&P 500 index declined 1.20% to 5,061.82. The VIX, a measure of market volatility, jumped by over 11% to 19.23.

Market Overview

Data released on Monday showed that U.S. retail sales in March increased by 0.7% month-on-month, significantly outperforming market expectations.

Strong consumer spending is expected to continue to boost the economy, with long-term U.S. Treasury yields across the board surging. The 2-year Treasury note, closely linked to interest rate expectations, reached as high as 4.99%, and the benchmark 10-year Treasury note broke through the 4.60% mark, setting a new high since November last year.

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Lydia Boussour, Senior Economist at EY Parthenon, wrote in a report: "The stronger-than-expected U.S. retail sales in March confirm that persistent high prices have not deterred consumers, as they continue to benefit from positive job growth and rising real wages. Although the resilience of U.S. consumers continues to drive the economy forward, we continue to expect that consumer spending will slow down this year due to cost fatigue and a weakening labor market that curbs income growth, limiting household consumption capacity."

New York Fed President Williams stated on Monday that interest rate cuts could begin this year, adding that despite the Federal Reserve's tight monetary policy, he expects the U.S. economy to continue expanding.

Federal funds rate futures indicate that traders expect only a 39 basis point room for the Federal Reserve to lower rates this year, with a probability of a rate cut in June at only around 20%.The new earnings season for US stocks has already begun. JPMorgan advises investors not to expect an optimistic corporate earnings season to drive the stock market higher, as most of the optimism has already been digested after a record rise this year. Excluding tech giants, S&P 500 index component companies are expected to see a comprehensive decline in profits.

In terms of individual stocks, Tesla fell by 5.6%, following an internal memo showing that the electric vehicle manufacturer will cut more than 10% of its workforce.

Goldman Sachs rose by 2.9%, benefiting from the recovery in underwriting, equity, and bond trading. The bank's net income for the first quarter was $3.93 billion, higher than the $3.09 billion in the same period last year, with revenue increasing from $12.224 billion a year ago to $14.213 billion.

Apple fell by 2.2%, after research firm IDC's data showed that Apple's smartphone shipments in the first quarter of 2024 declined by about 10%. Among other star tech stocks, Nvidia fell by 2.5%, Meta by 2.3%, Microsoft by 2.0%, Google by 1.8%, and Amazon by 1.3%.

Salesforce plummeted by over 7%, as media reports, citing sources, said the software maker is in advanced talks to acquire Informatica.

Crude oil prices fluctuated narrowly, with the near-month WTI crude oil contract falling by 0.29% to $85.41 per barrel, and the near-month Brent crude oil contract falling by 0.39% to $90.10 per barrel.

International gold prices stabilized and rebounded, with the COMEX gold futures for delivery in April on the New York Commodity Exchange rising by 0.41% to $2,365.80 per ounce. After the market closed, gold prices once again approached the $2,400 mark, following media reports that Israel plans to retaliate against Iran.