Wall Street began the week with losses, with both stocks and bonds falling, indicating that traders' aggressive pricing of Fed rate cuts may have gone too far.

A slew of key jobs readings in the coming days will be closely watched for clues on the Fed's next steps, with the potential to reignite volatility that has recently shown signs of anaemia. Technically "overbought" conditions and bullish positioning have left markets vulnerable to corrections following the historic rallies in both equities and Treasuries last month.

The S&P 500 declined from its peak in March 2022, while the Nasdaq 100 fell 1% amid a rout in megacaps. US two-year rates jumped nine basis points to 4.63%, while the dollar rose. Bitcoin lingered above $42,000 as feverish cryptocurrency speculation continued.