Global equities declined and U.S. Treasury yields rose on Monday as investors paused after a five-session rally and looked ahead to key economic data that could shape expectations for Federal Reserve interest rate cuts.

U.S. Market Performance:
Wall Street ended lower, led by declines in utilities, healthcare, and industrials. Energy stocks gained as oil prices rose.

• Dow Jones Industrial Average: Fell 0.90%
• S&P 500: Slipped 0.53%
• Nasdaq Composite: Dropped 0.38%

Global Markets:

• The pan-European STOXX 600 declined 0.20%, weighed down by defense stocks.
• The MSCI World Equity Index fell 0.40%, ending a five-day winning streak.

Treasury Yields and Dollar:

• The 10-year U.S. Treasury yield rose 7.3 basis points to 4.092%.
• The 2-year yield increased 4.3 basis points to 3.535%.
• The U.S. dollar index was little changed, while the Japanese yen strengthened 0.47% after Bank of Japan Governor Kazuo Ueda signaled a potential rate hike at the next meeting.

Key Drivers and Sentiment:

• U.S. Manufacturing Data: The sector contracted for the ninth consecutive month in November, weighed down by import tariffs.
• Fed Watch: Attention turns to upcoming Personal Consumption Expenditures (PCE) data and the Fed’s policy meeting on December 9–10.
• Market Commentary: “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,” said Mark Hackett of Nationwide.

Commodities and Crypto:

• Brent crude settled more than 1% higher.
• Gold touched a six-week high, up 0.22%, on rate cut expectations.
• Bitcoin extended losses, falling 5.49% to $86,172.03, pressuring crypto-related stocks.

Outlook:
The pullback reflects profit-taking and position adjustments as markets assess the timing and extent of potential Fed easing.