U.S. stocks dropped on Monday, with the benchmark S&P 500 at a two-month low as bond yields surged after robust payroll numbers last week, boosting expectations that the Federal Reserve will maintain a hawkish stance for most of this year.

Federal Reserve officials in December signaled concerns that President-elect Donald Trump’s policies could stoke inflation, contributing to a more cautious approach to interest rate cuts this year and even a pause this month.

Wall Street's main indexes opened lower on Monday, as yields surged after robust payroll numbers last week bolstered expectations that the Federal Reserve will maintain a hawkish stance for most of 2025.

Five of the 11 S&P 500 sectors declined, led by a 1.8 per cent drop in Technology stocks. Megacaps were down, with Tesla sliding 2 per cent, Apple dropping 2.7 per cent

Two top Federal Reserve officials on Thursday questioned the need for many more interest rate cuts. Fed Governor Michelle Bowman and Kansas City Fed President Jeff Schmid both said the 100 basis points in rate cuts since September has brought the Fed’s benchmark rate down to “neutral,” where it neither dampens or boosts demand.

Canada's main stock index slid to a two-week low on Monday, as investors globally avoided risky assets after last week's robust U.S. jobs data dashed expectations of the Federal Reserve cutting interest rates this year.

The price of Bitcoin fell to a two-month low Monday, as markets adjusted to the prospect of tighter monetary policy from the Federal Reserve.