S&P 500 falls as investors dial back bets on Fed rate cuts in 2025

U.S. stocks declined to start the week, with the S&P 500 hitting a two-month low as bond yields surged following strong payroll data last week, reinforcing bets that the Federal Reserve will maintain a hawkish stance through most of the year.

A recent surge in U.S. Treasury yields may gain even more momentum after a strong jobs report reinforced expectations that interest rates will stay high for longer and raised the spectre of benchmark 10-year yields hitting 5% — a level that some fear could rattle broader markets.