Equities on U.S. stock market closed lower, with utilities, healthcare and industrial stocks leading losses

U.S. shares dropped and Treasury yields rose on Monday as investors took a breather following five straight sessions of gains and ahead of key economic data that could support bets on central bank interest rate cuts.

Equities on U.S. stock market closed lower, with utilities, healthcare and industrial stocks leading losses. Energy stocks were the top gainers as Brent crude prices settled up more than 1%.

The Dow Jones Industrial Average dropped 0.90%, the S&P 500 slid 0.53%, and the Nasdaq Composite declined 0.38%. All three indexes had closed higher in the prior five trading days.

The MSCI World Equity Index was down 0.40% on the day following five straight sessions of gains.

The bull argument, both technically and fundamentally, is as strong as it has been in some time, while the bears are reliant on AI and valuation scepticism, said Nationwide Chief Market Strategist Mark Hackett.

U.S. Treasury yields rose across the board. The yield on benchmark U.S. 10-year notes gained 7.3 basis points to 4.092%. The 2-year note yield, which typically moves in step with central bank rate expectations, added 4.3 basis points to 3.535%.

The modest pullback today would not be unexpected, but it’s more of a pressure release valve following the rally than a sign of stress, Hackett added.

Data on Monday showed U.S. manufacturing contracted for the ninth consecutive month in November as the drag from import tariffs persisted. Other economic data including the closely watched Personal Consumption Expenditures Price Index are due later this week. The central bank will hold its next policy meeting on December 9 and 10.