US stocks declined in the first session of the year, while Treasury yields surged as traders moderated expectations for interest rate cuts.
The benchmark S&P 500 fell 0.6 per cent, dragged down by tech stocks. The tech-heavy Nasdaq Composite slid 1.6 per cent, notching its worst daily fall since late October.
Yields on the rate-sensitive two-year Treasury rose 0.07 percentage points to 4.32 per cent, while the yield on the 10-year note rose 0.08 percentage points to 3.94 per cent, having topped 4 per cent earlier.
The dollar rose 0.9 per cent against a basket of six peers.