Stock futures on Monday halted a recent rally that had pushed the Dow Jones Industrial Average to new records.
S&P 500 futures were up 0.02%, and Nasdaq futures declined 0.2%. Dow futures drifted 0.24% higher, but with none of the energy that characterized last week's rally.
The Dow rocketed higher last week, fueled by gains in financials and pharmaceutical stocks, after President-elect Donald Trump's election night victory. While most of his policies remain murky, investors bet big that Trump would loosen banking regulations and not pursue Democratic candidate Hillary Clinton's plan to address price gouging at drug companies. The Dow ended with its best weekly gain since 2011.
Treasury yields surged on Monday as investors feared faster inflation from Trump's spending plans would drive the Federal Reserve to hike rates at a faster pace to stay ahead of the curve. Trump proposed a "$1 trillion over a 10-year period" infrastructure stimulus plan in his victory speech last week. The yield on the 10-year Treasury note rose to 2.293% on Monday, its highest since the beginning of the year.
The Fed will next meet on December 13-14. Investors have priced in an 85% chance the Fed will hike at that meeting, according to CME Group fed funds futures. The Fed's plans will gain even more scrutiny this week as Fed Chair Janet Yellen presents her economic outlook on Capitol Hill. Yellen will address the Congressional Joint Economic Committee at 10 a.m. on Thursday. The Fed Chair last testified before that committee in December of last year, prior to the Fed's decision to hike interest rates for the first time in nearly a decade.