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Stocks closed mixed on Monday, with Big Tech names paring losses as the dollar and bond yields climbed amid fading hopes for interest rate cuts ahead of this week's key consumer inflation reports.

The S&P 500 ( ^GSPC ) settled almost 0.2% higher after falling as much as 1% during the session, while the Nasdaq Composite ( ^IXIC ) fell 0.4%. Shares of Nvidia ( NVDA ) and Apple ( AAPL ) closed off their session lows, though most "Magnificent Seven" tech megacaps fell during the session.

The blue-chip Dow Jones Industrial Average ( ^DJI ), which includes fewer tech stocks, rose 0.8%, or more than 350 points.

Stocks navigated another volatile session after Friday's plunge , which wiped out all year-to-date gains for Wall Street's major gauges. A hot December jobs report rattled markets, spurring concern that signs of strength in the economy will encourage the Federal Reserve to keep rates higher for longer.

The 10-year Treasury yield ( ^TNX ) added to recent gains to touch a 14-month high, trading around 4.8% as US bonds sold off . Meanwhile, the dollar ( DX-Y.NYB ) surged to a two-year high against major currency peers, with the UK pound ( GBPUSD=X ), in particular, coming under pressure .

As of Monday, traders are betting there will be no rate cut until at least September, per the CME FedWatch tool , and that the Fed will lower borrowing costs by just 30 basis points in the whole of 2025.

That has intensified the spotlight on the Consumer Price Index reading for December, due on Wednesday, given one big concern for markets is that inflation won't cool to the central bank's 2% target.

Meanwhile, oil prices rose to their highest levels in five months before paring gains after the US imposed tougher sanctions on Russia's crude industry, threatening supply to China and India. Brent ( BZ=F ) climbed to $81.01 a barrel, while West Texas Intermediate ( CL=F ) settled at $78.82.

Elsewhere in corporates, Moderna ( MRNA ) stock plunged 16% after the biotech giant cut its 2025 sales forecast by $1 billion amid soft demand for vaccines.