NEW YORK, New York - U.S. stock markets closed lower on Monday as investors and traders adopted a cautious stance ahead of the Federal Reserve's highly anticipated interest rate decision due on Wednesday.

The Standard and Poor's 500 finished the session down 23.89 points, or 0.35 percent, at 6,846.51, after trading between an intraday low of 6,827.19 and a high of 6,878.27. The benchmark index remains near record territory, but sentiment was restrained as market participants awaited further clarity on the outlook for US monetary policy.

The Dow Jones Industrial Average also moved lower, shedding 215.67 points, or 0.45 percent, to close at 47,739.32. The blue-chip index fluctuated between 47,611.93 and 47,971.51 during the session as investors pared back exposure to cyclical stocks.

Meanwhile, the technology-heavy Nasdaq Composite eased 32.22 points, or 0.14 percent, to end the day at 23,545.90, as modest profit-taking emerged across several large-cap technology names.

North of the border, Canadian equities tracked Wall Street lower. The S&P/TSX Composite Index declined 141.44 points, or 0.45 percent, closing at 31,169.97, with trading turnover of approximately 309.358 million shares.

Overall, Monday's declines reflected a market in pause mode, with investors and traders appearing reluctant to make significant directional bets ahead of the Federal Reserve's policy announcement, which is expected to provide fresh guidance on the future path of U.S. interest rates.

U.S. Dollar Displays Slightly Firmer Tone against Major Currencies in Monday's Forex Trade

The U.S. dollar traded mixed against key global currencies in Monday's foreign exchange markets, as investors weighed shifting interest rate expectations and ongoing global economic uncertainty.

The euro was flat against the greenback, with the euro–US dollar pair (EUR/USD) last trading at 1.1640, down 0.01 percent on the session, reflecting subdued demand for the single currency amid cautious sentiment across the eurozone.

The U.S. dollar strengthened against the Japanese yen, with USD/JPY rising to 155.90, up 0.36 percent, as yield differentials continued to favour the U.S. currency despite lingering concerns over potential intervention by Japanese authorities.

The greenback also gained against the Canadian dollar Monday, with USD/CAD climbing to 1.3851, an increase of 0.27 percent, as commodity-linked currencies faced modest pressure.

Against sterling, the dollar was little changed, with the British pound–U.S. dollar pair (GBP/USD) ticking lower to 1.3328, down 0.01 percent, as traders digested fresh outlooks on UK economic growth and monetary policy.

The U.S. dollar advanced versus the Swiss franc, with USD/CHF rising to 0.8067, up 0.32 percent, extending gains as investors moved modestly away from traditional safe-haven assets.

In the Asia-Pacific region, the Australian dollar weakened against the U.S. dollar, with AUD/USD easing to 0.6624, a decline of 0.22 percent, while the New Zealand dollar edged higher, with NZD/USD lifting to 0.5775, up 0.05 percent on the session.

Overall, Monday's currency trade reflected continued sensitivity to global interest rate expectations and economic data, with the U.S. dollar showing resilience against most major counterparts, while select commodity and regional currencies posted mixed performances.

Global Markets Mixed at Monday's Close as Asia Diverges, Europe Hedges Bets

Global share markets finished Monday's trading session on a mixed note, with modest losses across several European bourses, sharper declines in parts of Asia, and Canada, and solid gains in select emerging and regional markets.

In London, the FTSE 100 slipped 21.92 points, or 0.23 percent, to close at 9,645.09, trading between an intraday low of 9,629.19 and a high of 9,692.36.

In Germany the benchmark DAX edged higher, gaining 17.87 points, or 0.07 percent, to finish at 24,046.01, after ranging from 23,985.28 to 24,116.99.

France's CAC 40 eased 6.31 points, or 0.08 percent, to settle at 8,108.43, while the broader regional EURO STOXX 50 added 1.66 points, or 0.03 percent, closing at 5,725.59.

The Euronext 100 Index also posted a modest gain, rising 0.79 points, or 0.05 percent, to 1,706.13.

In Belgium Monday, the BEL 20 edged lower by 1.62 points, or 0.03 percent, ending the session at 5,028.12.

In Asia, markets were weaker overall. Hong Kong's Hang Seng Index fell sharply, shedding 319.72 points, or 1.23 percent, to close at 25,765.36, after touching a session high of 26,151.46.

On the Chinese mainland, the SSE Composite Index advanced 21.27 points, or 0.54 percent, to close at 3,924.08, supported by steady buying across industrial and technology stocks, following the announcement that China's trade surplus had surpassed $1 trillion for the first time, a sign the tariff war with the U.S. has largely benefited China.

Japan's Nikkei 225 ended the session higher, adding 90.07 points, or 0.18 percent, to close at a lofty 50,581.94.

In Singapore the STI Index declined 24.28 points, or 0.54 percent, to 4,507.08.

Australian equities ended modestly lower, with the S&P/ASX 200 down 10.20 points, or 0.12 percent, closing at 8,624.40, while the broader All Ordinaries fell 11.10 points, or 0.12 percent, to 8,915.00.

In New Zealand the S&P/NZX 50 Gross Index edged up 2.33 points, or 0.02 percent, to close at 13,486.32.

India's S&P BSE Sensex recorded a sizeable pullback, dropping 609.68 points, or 0.71 percent, to finish at 85,102.69, after trading between 84,875.59 and 85,722.97.

By contrast, Iin ndonesia the IDX Composite advanced strongly, rising 77.93 points, or 0.90 percent, to 8,710.70, while Malaysia's FBM KLCI slipped 3.74 points, or 0.23 percent, to 1,612.78.

North Asia posted notable gains Monday. South Korea's KOSPI Composite Index surged 54.80 points, or 1.34 percent, to 4,154.85, while in Taiwan the TWSE Capitalization Weighted Stock Index jumped 322.89 points, or 1.15 percent, ending the day at 28,303.78.

In the Middle East and Africa, Israel's TA-125 Index added 5.52 points, or 0.15 percent, to finish at 3,572.88.

In Egypt the EGX 30 Price Return Index rose 200.80 points, or 0.48 percent, to close at 41,963.20 on turnover of approximately 363.025 million shares. In contrast,

South Africa's Top 40 USD Net TRI Index dropped sharply, declining 145.06 points, or 2.18 percent, to 6,504.92.

Overall, Monday's trading reflected cautious sentiment in Europe, Canada, and parts of Asia, while strength in North Asia and select emerging markets helped offset broader regional weakness as investors continued to assess global economic signals and policy outlooks.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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