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.

But minutes from their December meeting suggest that the decision was a close call — and that there is no guarantee policymakers will lower rates again anytime soon. The minutes of the central bank’s Dec.

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.

St. Louis Fed President Alberto Musalem suggests greater caution is warranted on reducing interest rates.