Wall Street reduced its bets on Federal Reserve rate cuts amid speculation that the dovish bid that has emboldened stock and bond bulls has gone too far.

Equities fell, while Treasury yields rose alongside the dollar, as Fed Governor Christopher Waller appeared to defy expectations of up to six rate cuts this year. While Waller was not outright hawkish, his comments were not particularly dovish, prompting a rethinking of rate bets. Fed swaps show the probability of an easing as early as March falling to around 65% from nearly 80% on Friday.

US 10-year yields surpassed 4%, the dollar rose to its highest level since March, and the S&P 500 fell. Morgan Stanley fell following a warning about lower wealth margins, while Goldman Sachs rose as profit exceeded expectations. Boeing plummeted following an analyst downgrade. Apple suffered a setback when the US Supreme Court refused to hear its appeal in an antitrust case involving the App Store.