Global equities and U.S. Treasury yields pulled back on Monday as investors took profits after a five-session rally and awaited key economic data that could influence Federal Reserve rate-cut expectations.

U.S. Market Performance:
Wall Street traded lower, led by declines in utilities, real estate, and industrials. Energy stocks rose alongside oil prices.

• Dow Jones Industrial Average: Fell 0.69%
• S&P 500: Slipped 0.55%
• Nasdaq Composite: Dropped 0.65%

Global Markets:

• The pan-European STOXX 600 declined 0.28%, weighed down by weakness in defense stocks.
• The MSCI World Equity Index fell 0.39%, ending a five-day winning streak.

Treasury Yields and Currency Moves:

• The 10-year U.S. Treasury yield rose 6.4 basis points to 4.083%.
• The 2-year yield increased 3.7 basis points to 3.528%.
• The Japanese yen strengthened 0.72% against the dollar after Bank of Japan Governor Kazuo Ueda signaled a potential rate hike at the next meeting.
• The U.S. dollar index fell 0.27%.

Key Data and Sentiment:

• U.S. Manufacturing: Contracted for the ninth consecutive month in November, impacted by import tariffs.
• Fed Watch: Focus shifts to the upcoming Personal Consumption Expenditures (PCE) inflation data and the Fed’s December 9–10 policy meeting.
• 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 rose more than 1%.
• Gold hit a six-week high on expectations of U.S. rate cuts.
• Bitcoin extended its decline, falling 6.8% to $84,985.46, pressuring crypto-related stocks.

Outlook:
The pullback reflects a consolidation phase as markets assess the timing of potential Fed easing and digest central bank signals from the U.S. and Japan.