US stocks drop and bond yields rise as traders await round of new economic data

• US stocks fell to start the week, with investors awaiting more economic data after the November jobs report.
• On tap this week is the latest Producer Price Index Reading on Friday, as well as new consumer sentiment data.

US stocks dropped Monday, with traders bracing for more data points this week that will hint at the state of the economy following Friday's surprisingly strong November jobs report.

The addition of 263,000 new jobs last month was a big overshoot of the 200,000 expected, sending stocks to a mixed close in Friday's session on the expectation that the Federal Reserve will have to keep financial conditions tight in order to cool down the economy and tame inflation.

This week, manufacturing data from the Institute of Supply Management is due out at 10 a.m. Monday. Later in the week, traders will be watching for a fresh reading of the Producer Price Index for more clues on the state of inflation on Friday. Finally, key consumer sentiment updates will be coming from the University of Michigan.

Here's where US indexes stood shortly after the 9:40 a.m. opening bell on Monday:

• S&P 500: 4,051.20, down 0.5%
• Dow Jones Industrial Average: 34,246.92, down 0.5% (183 points)
• Nasdaq Composite: 11,421.35, down 0.4%

Here's what else is happening today:

• A price cap on Russian oil kicked in. Here's what it means and how it may impact crude prices globally.
• Mohamed El-Erian is sounding the alarm again on the possibility the Fed makes a policy error. This time he's warning of issues he's seeing in the labor market that could prompt a mistake by the central bank.
• Billionaire investor Bill Ackman tried to clear up comments he said were misinterpreted as defending fallen FTX founder Sam Bankman-Fried. "Nothing could be further from the truth."

In commodities, bonds, and crypto:

• Oil prices were higher as the price cap on Russian crude set in. West Texas Intermediate crude oil was up 2.75% to $82.18. Brent, the international benchmark, was up 2.6% to $87.82.
• Gold prices edged lower by about 0.2% to $1,805.90 per ounce.
• Bond yields rose. The 10-year Treasury ticked up by four basis points to 3.55%.
• Bitcoin rose 1.6% to $17, 238.