Stocks tumbled on Monday, Jan. 29, as bond yields spiked.

The Dow Jones Industrial Average declined by 177 points, or  0.67%, to 26,439. The S&P 500 also declined by 0.67% and the Nasdaq slid 0.52%. Leading the Dow lower on Monday were Caterpillar Inc. (CAT) and Apple Inc. (AAPL) .

Apple fell 2% following a report from Nikkei that said the tech giant was cutting iPhone X production because of weaker demand.

The Dow, S&P 500 and Nasdaq all finished at new highs on Friday, Jan. 26.

Benchmark 10-year U.S. Treasury yields rose to a near four-year high of 2.71% on Monday amid increasing concerns over faster inflation readings in the world's biggest economy. Two-year notes were also on the move, rising to 2.15%, the highest since 2008.

Besides digesting the spike in bond yields, Wall Street was preparing Monday for a busy week of earnings reports, Donald Trump's "State of the Union" address and Janet Yellen's last Federal Reserve meeting as chair of the central bank.

Shares of Dr Pepper Snapple Group Inc. (DPS)  surged 22% on Monday to $118.58 after it announced a merger with Keurig Green Mountain Inc.

Dr Pepper Snapple shareholders will receive $103.75 a share in a special cash dividend and retain 13% of the combined company. Keurig will take over a controlling 87% stake. The new company, which will be called Keurig Dr Pepper, is expected to rake in $11 billion in annual revenue. 

Lockheed Martin Corp. (LMT)  reported fourth-quarter adjusted earnings of $4.30 a share on revenue of $4.04. Analysts expected earnings of $4.04 a share on sales of $14.73 billion. The defense contractor also said it expects 2018 profit of $15.20 to $15.50 a share; analysts predicted $14. Shares rose 1.8%.

Earnings reports will come later in the week from heavyweights Apple, Microsoft Corp. (MSFT) , Facebook Inc. (FB) and Amazon Inc. (AMZN) . 

Apple, Microsoft and Facebook are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells the stocks? Learn more now.

Wynn Resorts Inc. (WYNN) fell 9% on Monday after Chairman and CEO Steve Wynn resigned Saturday, Jan. 27, as finance chairman of the Republican National Committee amid allegations of sexual harassment and assault.

Dell Technologies could emerge as a public company through a reverse-merger with VMware Inc. (VMW) which Dell already controls, CNBC reported, citing people familiar with the matter.

The deal would likely be the biggest deal in tech industry history, according to CNBC.

VMware shares fell 16% on Monday. Last week it was reported that Dell was conducting a review of its strategic options including a possible initial public offering and the acquisition of the remaining portion of VMware that it doesn't already own.

Trump is scheduled to deliver his first "State of the Union" address on Tuesday, Jan. 30, and he is expected to highlight immigration and national security issues, discuss trade deals and reveal some of his infrastructure plans.

As for Yellen, she will preside over her final meeting as Fed chair on Tuesday and Wednesday, Jan. 31. She will hand the reins to her successor, Jerome H. Powell. The Fed isn't expected to raise rates at the meeting but economists expect the central bank to lift rates when it next meets in March.

More of What's Trending on TheStreet:

More from Markets

Amazon Reportedly Among Bidders for Disney's Regional Sports Networks

Amazon Reportedly Among Bidders for Disney's Regional Sports Networks

Stocks Turn Negative for the Year, Dow Drops Triple Digits for Second Session

Stocks Turn Negative for the Year, Dow Drops Triple Digits for Second Session

Making Sense of the Mysterious Strategic Petroleum Reserve

Making Sense of the Mysterious Strategic Petroleum Reserve

Global Stocks Slide as Apple Sours Tech; Dollar Drifts Ahead of US Housing Data

Global Stocks Slide as Apple Sours Tech; Dollar Drifts Ahead of US Housing Data

FAANGs, Retail, Housing, Boston Scientific & Renault - Five Things You Must Know

FAANGs, Retail, Housing, Boston Scientific & Renault - Five Things You Must Know