US stocks fell sharply on Monday, driven by technology shares as the Nasdaq plunged 1.6% and the S&P 500 declined 0.8%. The move reflected waning expectations for near-term interest rate cuts after stronger-than-expected December jobs data, which pushed traders to largely rule out cuts until September 2025. Benchmark yields rose, with the 10-year Treasury climbing to a 14-month high near 4.8%, while the dollar strengthened to a two-year high against major currencies.
Markets also felt pressure from rising oil prices, which hit five-month highs after the United States announced new sanctions on Russian crude. That boost in energy costs added to inflation concerns, reinforcing the view that monetary easing may be delayed. Major technology companies, often referred to as the “Magnificent Seven” — including Nvidia, Apple and Tesla — all traded lower, contributing to the broader market decline.
Investors are now focused on the upcoming Consumer Price Index report scheduled for Wednesday, looking for further signs about inflation and the Federal Reserve’s likely policy path. The CPI will be closely watched for any indication that price pressures are easing or persisting, information that could influence expectations for future interest-rate decisions.
