NEW YORK (AP) – Stocks fell Monday as bond yields rose and oil prices rebounded from a sell-off Friday.

The yield on the Treasury’s 10-year note rose to 5.15 percent Monday from 5.11 percent late Friday. Last week, investors took stubborn inflation to mean that a rate cut by the Fed was unlikely, and they sent stock and bond prices tumbling; since yields move in the opposite direction from bond prices, market interest rates soared. The 10-year Treasury yield climbed above 5 percent for the first time since last summer.

The Fed has kept the federal funds rate, the interest banks charge each other for overnight loans, unchanged at 5.25 percent since last summer, following a string of increases over about two years.

While American stocks rose sharply Friday, Wall Street still logged its worst week in about three months amid interest rate concerns.

In midmorning trading Monday, the Dow Jones industrial average fell 38.60, or 0.29 percent, to 13,385.79.

Broader stock indicators fell. The Standard & Poor’s 500 index fell 3.81, or 0.25 percent, to 1,503.66 and the Nasdaq composite index slipped 4.09, or 0.16 percent, to 2,569.45.

Stock markets abroad rose after steep declines last week. Japan’s Nikkei stock average rose 0.31 percent and China’s often-volatile Shanghai Composite Index rose 2.1 percent. In afternoon trading, Britain’s FTSE 100 rose 0.57 percent, Germany’s DAX index advanced 1.08 percent, and France’s CAC-40 rose 0.73.

Oil prices, which also stirred inflation concerns last week, rebounded Monday after falling sharply Friday. Iran’s oil minister said Monday the Organization of Petroleum Exporting Countries doesn’t plan to release more oil into the market ahead of its next policy meeting in September. Light, sweet crude rose 22 cents to $64.98 per barrel on the New York Mercantile Exchange.

Little economic or earnings data were due for release Monday, so investors will be looking to moves overseas as well as data on inflation later in the week to determine whether last week’s sell-off was overdone. On Thursday, the Labor Department releases its producer price index and on Friday the consumer price index is due.

Cleveland Fed President Sandra Pianalto, speaking in Germany on Monday, said that while inflation expectations “appear to be well-anchored,” spikes in prices, liquidity crises, or fiscal imbalances could upend central banks’ notions of how contained inflation might be.

In corporate news, Canada’s Neurochem Inc. rose 83 cents, or 13.9 percent, to $6.55 as investors awaited an update Monday on Alzhemed, a drug in development for treatment of Alzheimer’s disease.

Biotech drug maker Medivation Inc. soared $3.73, or 23.1 percent, to $19.91 after the company said its Alzheimer’s drug Dimebon showed favorable results. The company’s previous 52-week high was $21.85.

Bearingpoint Inc. fell 29 cents, or 3.8 percent, to $7.31, after a Jefferies analyst lowered his rating on the management and technology consulting company citing increased competition and lower demand in the sector.

JoS. A. Bank Clothiers Inc. rose 81 cents to $43.54 after the clothing retailer reported a stronger-than-expected fiscal first-quarter profit as sales rose sharply. The stock’s previous 52-week high was $44.36.

The dollar was mixed against other major currencies, while gold prices rose.

Declining issues outnumbered advancers by about 3 to 2 on the New York Stock Exchange, where volume came to 242.1 million shares.

The Russell 2000 index of smaller companies fell 5.43, or 0.65 percent, to 829.88.

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