US stocks fall, led by Tech Shares

Stocks have had a volatile start to the year, amplified in recent days by extreme moves in big tech stocks. Last week saw a record drop in Meta . Platform stocks and the biggest gain since 2015 for Amazon.com stocks, after companies announce earnings. Friday Work report better than expected also brought traders’ attention back to central bank policy, which is set to tighten as the economy continues to recover.

Shares of Meta and

Netflix

Monday’s declines, losing 5.5% and 3.5% respectively, affect the broader market. Amazon continued to rise, adding 0.8%. Recent moves to continue the divergence in the so-called FAANG name have turned investors around how they trade hot tech group.

In company news, Peloton is up 14% after The Wall Street Journal reported that the stationary bike company is attracting interest from Amazon and other potential suppliers.

Spirit Airlines

added 15% after they said they were merging with Frontier Group.

Tyson Foods

up 11% after saying it expected sales for the year to be at the end of its instructions.

Hasbro

slipped 0.4% after it reported revenue and profit that beat Wall Street estimates.

Yields on the benchmark 10-year Treasury note hovered at 1.927% Monday, from 1.930% Friday.

“The market has revalued, as seen with rising yields, but I think we’re getting to a point where it’s very difficult to price in a much more hawkish outlook than it is today. Esty Dwek, Chief Investment Officer at FlowBank, said we could see some stabilization for now.

Gregory Perdon, chief investment officer at

Arbuthnot Latham.

Securities development in particular can suffer from higher yields since their present value is largely determined by growth expectations, which shrink when calculated with higher interest rates.

Companies scheduled to post results this week include

Pfizer

and

KKR

on Tuesday and Uber Technologies and Walt Disney on Wednesday.

Coca-Cola,

PepsiCo

and

Twitter

expected on Thursday.

“In general, the income is very good. We’re finding that consumers are still pretty strong and companies that are reopening are doing better than stay-at-home companies,” Ms. Dwek said. “Investors are trying to see past the pandemic.”

But it’s hard to impress investors this earnings season. Companies that are beating estimates are performing worse than in the past, while those that are missing estimates are being punished.

JPMorgan Chase & Co.

strategists in a note to clients on Monday.

JPMorgan’s Marko Kolanovic wrote in a number of signs that investors have been overly bearish in recent weeks.

“When the sentiment is too bearish, we expect the market to move up,” said Mr. Kolanovic.

The cryptocurrency rallied on Monday, with bitcoin up 5% from its levels as of 5 p.m. ET on Friday. It is trading around $42,800. The digital currency rallied above $40,000 on Friday after spending two weeks below that level and maintained it through the weekend and into Monday.

Abroad, the continent-wide Stoxx Europe 600 added 0.7%. European government bond yields extend last week’s gains as markets continue to price in hawkish signals from European Central Bank press conference on Thursday. Yields on benchmark Italian and Greek 10-year notes have risen to their highest levels since spring 2020.

In Asia, the key benchmarks differ. The Shanghai Composite Index rose 2%, reopening after the Chinese New Year holiday week, despite a private gauge of China’s services sector falling to a five-month low. Patrick Ru, global equity portfolio manager at Neuberger Berman Group, said the growth in domestic Chinese equities was a catch-up trade, following last week’s rally in US stocks. .

Hong Kong’s Hang Seng Index closed flat and Japan’s Nikkei 225 fell 0.7%.

Write to Anna Hirtenstein at anna.hirtenstein@wsj.com and Gunjan Banerji at gunjan.banerji@wsj.com