The major averages trade lower on Monday, while yields were higher, as markets get ready for a holiday-shortened week.

The S&P 500 (SP500) was -0.4%, the Nasdaq Composite (COMP:IND) was -0.2% and the Dow (DJI) was -0.7%.

The 10-year Treasury yield (US10Y) rose 3 basis points to 4.55%. The 2-year yield (US2Y) rose 1 basis point to 4.33%.

Wall Street surged on Friday, after some favorable inflation data helped traders look past the Federal Reserve's hawkish tilt that roiled markets two days ago. Still, the central bank's forecast of fewer interest rates was enough to send the benchmark S&P 500 to its worst week in over a month.

"The past week saw mixed performance in U.S. stock markets, with most major indexes declining," Bas Kooijman, CEO and Asset Manager of DHF Capital S.A, said.

Traders are also hoping for the Santa Claus Rally to kick off, which historically boosts stocks in the last five trading days of December and first two of January.

Markets will be close early on December 24, Tuesday and be shut on December 25, Wednesday, for Christmas.

Chicago Fed national activity index increased in November.

Furthermore, the U.S. Consumer Confidence report fell less than expected in December to 104.7.

On the political side, the U.S. Senate on Saturday voted to pass a spending bill that will fund the government through mid-March and avoid a shutdown. President Joe Biden signed the legislation into law.

Source: msn