The Nasdaq fell on Monday, while the benchmark S&P 500 bounced off a two-month low and eked out a slight gain as U.S. Treasury yields stayed elevated with investors dialing back expectations on the pace of rate cuts from the Federal Reserve.

Recent economic data have indicated a resilient economy with nagging price pressures, which has pressured equities. Comments from Fed officials have pushed bond yields higher. The S&P 500 had weekly losses in four of the last five weeks.

Promised tariffs from President-elect Donald Trump have also fueled worries about inflation.

Treasury yields edged higher, with the benchmark 10-year note yield touching a 14-month high of 4.805% and last up 1.6 basis points to 4.79%.

Markets are pricing in about 27 basis points of cuts from the Fed this year, with a 52.9% chance for a June cut.

The Dow Jones Industrial Average (.DJI), rose 358.67 points, or 0.86%, to 42,297.12, the S&P 500 (.SPX), gained 9.18 points, or 0.16%, to 5,836.22 and the Nasdaq Composite (.IXIC), lost 73.53 points, or 0.38%, to 19,088.10.

The Dow was buoyed by a 3.93% gain in UnitedHealth Group (UNH.N), after President Joe Biden's administration proposed 2026 reimbursement rates for Medicare Advantage plans run by private insurers, which would result in a 2.2% increase in payments.

Source : Reuters