United States equities ended lower on Monday as investors weighed expectations of additional interest rate cuts by the Federal Reserve, while gold prices retreated from record highs in a week shortened by holidays.

According to Reuters, the Dow Jones Industrial Average fell by 219.42 points, representing a decline of 0.46 per cent, to close at 48,489.11.

The S&P 500 also moved lower, shedding 24.21 points or 0.35 per cent to finish at 6,905.73.

Similarly, the Nasdaq Composite declined by 117.42 points, or 0.50 per cent, closing the session at 23,474.13.

Reuters reports that the market downturn was largely driven by weakness in technology and materials stocks, as investors analysed fresh economic data and policy signals from the Federal Reserve, particularly regarding the outlook for 2026.

Treasury yields eased during the session, while the U.S. dollar hovered near its lowest level in almost three months, reflecting persistent market expectations that the Federal Reserve may cut interest rates further.

“It’s a very light trading week ahead; volume is low, so any kind of activity could push the index one way or the other,” said Sam Stovall, chief investment strategist of CFRA Research in New York, according to Reuters.

“Possibly you have people who have decided to sell, and they want to do some tax loss harvesting,” Stovall added.

Market participants were also closely watching developments surrounding negotiations between the United States and Ukraine, amid renewed hopes for a peace agreement following discussions between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy.

However, Reuters notes that optimism over a potential deal was dampened after Russian authorities stated that Ukraine had attempted an attack on the residence of President Vladimir Putin.

Despite the pullback recorded on Monday, both U.S. and global equities remain on track to post double-digit gains in 2025, according to Reuters.

The strong performance marks a positive conclusion to what has been a turbulent year characterised by trade tensions, shifting central bank policies and persistent geopolitical uncertainties.

In Europe, stock markets steadied near record highs, as gains in basic resources companies helped offset declines in defence-related stocks.

MSCI’s gauge of global equities fell by 0.21 per cent to 1,020.75.

The pan-European STOXX 600 index edged up by 0.07 per cent, while the FTSEurofirst 300 index also rose by 0.07 per cent.

Emerging market equities advanced by 0.28 per cent to 1,401.35.

Shares in the Asia-Pacific region outside Japan gained 0.3 per cent, while Japan’s Nikkei index declined by 0.44 per cent to 50,526.92, Reuters reports.

In the currency markets, the dollar index slipped by 0.03 per cent to 98.00.

The euro strengthened by 0.09 per cent to trade at $1.1782.

The U.S. dollar weakened by 0.22 per cent against the Japanese yen, falling to 156.19.

U.S. Treasury yields edged lower, with the benchmark 10-year note yielding 4.124 per cent and the 30-year bond yielding 4.808 per cent.

Oil prices climbed sharply on expectations of progress in U.S.-Ukraine talks and concerns over possible supply disruptions in the Middle East.

U.S. crude oil rose by 2.47 per cent to $58.14 per barrel.

Brent crude gained 2.26 per cent to settle at $62.01 per barrel.

In contrast, gold prices retreated from recent highs, with spot gold falling by 4.66 per cent to $4,321.25 per ounce.

U.S. gold futures also declined, dropping 3.31 per cent to $4,379.00 per ounce, Reuters reports.