Bond yields went up as investors bet the Federal Reserve will keep their interest rates at high levels for longer.
Peter Essele, head of portfolio management at Commonwealth Financial Network, told CNBC Monday that equity markets want to move higher but that's very dependent on inflation getting under control, as stated by Peter Essele, head of portfolio management at the Commonwealth Financial Network. When you have above expectation prints on any econ number that comes out, that tends to cause inflationary concerns, which sends rates higher. The Dow Jones industries slumped by 482.78 points, or 1.40 percent, to 33,947 on Monday. The Nasdaq Composite lost 221.56 points or 1.93 percent to 11,239. The Standard and Poor's 500 dropped 72.86 points or 1.79 percent to 3,998. The US dollar sent the major currencies scurrying as it reasserted its authority on foreign exchange markets. The euro fell to 1.0487. The British pound dropped to 1.2178. The Japanese yen was weakened to 136.71. The Swiss franc dipped to 0.9431 at the beginning of the day.
The Australian dollar fell to 0.6691. The New Zealand dollar was significantly weaker at 0.6311.
On overseas equity markets, stocks were mixed. In Germany, the Dax gained 0.56 percent. The FTSE 100 in London was off 0.15 percent. The Paris-based CAC 40 fell by 0.67 percent.
The Hang Seng in Hong Kong jumped 842.94 points or 4.51 percent to 19,518 across Asia. In Japan, the Nikkei 225 edged up 42.50 points or 0.15 percent to 27,820. The Australian All Ordinaries gained 24.30 points, or 0.32 percent, to 7,527. New Zealand's S&P NZX 50 rose 35.90 points or 0.31 percent to 11,677. The Composite Index went against the trend, losing 32.31 points or 0.46 percent to 6,987 in Jakarta. The Kospi Composite in South Korea dropped 15.01 points or 0.62 percent to 2,419.