US indices trim losses at close as bond yields decline

US stock indices cut their losses during trading on Monday, with a decline in Treasury bond yields amid profit-taking by investors at the end of the year.

The energy sector was the only one rising among the 11 sectors in the S&P 500 index.

Dow Jones closed lower by 0.95%, or 418 points, at 42,573, after the industrial index fell more than 700 points during the session.

The S&P 500 dropped by more than 1%, or nearly 63 points, at 5,906, while the Nasdaq Composite lost 1.2%, or 235 points, to close at 19,486.

The STOXX Europe 600 index retreated by 0.45% to 504.8 points, as the banking, energy and utilities sectors narrowed their losses.

Meanwhile, the British FTSE index declined 0.35% to 8,121 points. The French CAC index fell by 0.55% to 7,313 points, while the German DAX index lost 0.4% to 19,909 points.

In Japan, the Nikkei index decreased by 0.95%, or 386 points, to 39,894, while the broader TOPIX, declined by about 0.60% to 2784 points.

In the oil market, futures prices for standard Brent crude for February 2025 delivery rose by 0.3%, or 22 cents, to $74.39 a barrel, while the most active March 2025 contract increased by 0.25%, or 20 cents, to $73.99.

US Nymex crude futures for February 2025 delivery gained 0.55%, or 39 cents, to $70.99 per barrel.

Gold futures prices for delivery in February 2025 fell by 0.5%, or $13.8, to $2,618.10 per ounce.

Trading is expected to remain weak during the week, as the bond market is scheduled to close early on Tuesday, while stock and bond markets will close on Wednesday marking the beginning of the new year.