Wall Street Extends Losses

US stocks extended losses in afternoon trading Monday while Treasuries recovered from 10-week lows and the dollar index rebounded from a near 6-month low after better-than-expected economic data dashed hopes for a pause in the Fed's aggressive monetary policy tightening.

The Dow Jones fell more than 400 points and both the S&P 500 and the Nasdaq 100 were down over 1.5% each.

November's ISM PMI report showed that US services industry activity rose in November, indicating that the world's largest economy remains resilient despite growing macro headwinds.

Upbeat ISM data followed a stronger-than-expected payroll report, raising chances for a higher terminal rate of close to 5% in the middle of 2023.

Meanwhile, Tesla dropped 6% after warning about a cut in the December output of the Model Y at its Shanghai plant.

On the flip side, US-listed Chinese companies, including Alibaba Group and JD.com traded slightly higher on hopes for a swifter reopening of China's economy.