U.S. Stocks Stumble Amid Surging Yields and Market Uncertainty

U.S. stocks fell Monday as the S&P 500 reached a two-month low due to higher bond yields and robust payroll data, hinting at a persistent Federal Reserve hawkish stance. Moderna's stock plummeted after cutting its 2025 forecast, while chip stocks declined with tightened AI technology exports.

U.S. stock markets experienced a downturn on Monday, with the S&P 500 hitting a fresh two-month low. The decline is attributed to soaring bond yields and strong payroll data, both indicating that the Federal Reserve is likely to maintain a strict monetary policy approach throughout the year.

Key market players like Moderna faced significant setbacks, with its shares dropping sharply by 21.8% after announcing a $1 billion cut in its 2025 sales forecast. Additionally, chip stocks saw a decline following new U.S. restrictions on the export of AI chips and technologies.

Despite a rise in energy stocks due to higher crude prices, the broader market sentiment remained negative. Investors are cautious as they await critical economic indicators like the Consumer Price Index and the Beige Book, which could shape future Federal Reserve policies.

(With inputs from agencies.)