US Stocks Plunge Amid Weak Data and Rising Treasury Yields

US stocks declined on Monday as weak economic data led investors to scale back bets on an imminent Federal Reserve interest rate increase. The Dow Jones Industrial Average fell by 0.51%, while the S&P 500 dropped 0.52% and the Nasdaq Composite was down 0.31%. The MSCI gauge of stocks across the globe fell 0.35%, with the pan-European STOXX 600 Index dropping 0.22%.

The dollar hit a two-month low against the euro as traders pushed back their expectations for the Fed's next move amid soft US economic data, including an unexpected drop in retail sales last month. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was down 0.06% at 99.6.

Thirty-year Treasury yields climbed to their highest level since 2007 as concerns over the US fiscal trajectory combined with heavy AI-related corporate debt issuance to push yields up. The yield on benchmark US 10-year notes rose by 2.79 basis points to 4.724%, while the 30-year bond yield gained 4.43 basis points to 5.3103%.