Global equities slipped on Monday while U.S. Treasury yields moved higher, as investors paused after five straight sessions of gains and awaited key economic data that could reinforce expectations of Federal Reserve rate cuts.
U.S. stocks traded lower, with utilities, real estate, and industrials leading losses. Energy shares outperformed as Brent crude rose more than 1%. The Dow Jones Industrial Average fell 0.69%, the S&P 500 declined 0.55%, and the Nasdaq Composite dropped 0.65%. All three major indexes had posted gains in each of the previous five sessions.
European markets also weakened, pressured in part by declines in defense stocks. The pan-European STOXX 600 index slipped 0.28%. The MSCI World Equity Index fell 0.39%, ending its five-session winning streak.
Nationwide Chief Market Strategist Mark Hackett noted that the bullish case remains strong on both technical and fundamental grounds, while bearish positions rely heavily on doubts about AI and elevated valuations. He added that Monday’s decline appears to be a normal pullback following recent gains rather than a sign of market stress.
U.S. Treasury yields rose across maturities. The benchmark 10-year Treasury yield climbed 6.4 basis points to 4.083%, while the 2-year yield—more sensitive to Fed policy expectations—rose 3.7 basis points to 3.528%.
Fresh economic data showed U.S. manufacturing contracted for the ninth consecutive month in November, as ongoing import tariffs continued to weigh on the sector. Investors are now looking toward additional data later this week, including the key Personal Consumption Expenditures index.
In Japan, comments from Bank of Japan Governor Kazuo Ueda lifted expectations for a rate hike. Ueda said the central bank would weigh the “pros and cons” of raising rates at its upcoming meeting. The yen strengthened 0.72% to 155.06 per dollar, while the euro rose 0.33% to $1.1633.
The U.S. dollar index slipped 0.27% to 99.17. Bitcoin fell 6.8% to $84,985.46, extending losses and adding pressure to companies exposed to the cryptocurrency. Gold hit a six-week high, supported by rising expectations of future Fed rate cuts, and was last quoted at $4,227.45.
