US Stocks End Lower on Worries Over Fed's Policy Path

The Dow Jones slumped nearly 500 points to close at 33,947 on Monday, while the S&P 500 and Nasdaq Composite slid by 1.8% and 1.9%, respectively, after better-than-expected service-sector activity data suggested the US Federal Reserve could raise interest rates for longer.

Data showed US service sector unexpectedly picked up in November, helped by a rebound in employment, indicating that the world's largest economy remains resilient despite growing macro headwinds.

The data comes on the heels of November's jobs report released last week, which showed stronger-than-expected job and wage growth over the same period.

Meanwhile, tech shares were among the worst performers, with Tesla shares shedding more than 6%, after the electric-vehicle maker announced plans to cut December output of the Model Y at its Shanghai plant by more than 20% from the previous month.

On a brighter note, Macao-linked casino stocks gained on hopes of easing Covid-19 restrictions.