Dow tumbles 483 points as economic data strengthens the case for more Fed hawkishness

• The Dow fell almost 500 points as traders flinched at new data that made a case for the Fed to stay hawkish. 
• ISM services sector data for November turned higher, and factory orders increased in October. 
• Bond yields jumped. The 10-year Treasury yield climbed to 3.60%.

US stocks closed lower on Monday, with the Dow Jones Industrial Average dropping by over 500 points after new data helped ramp up concerns that the Federal Reserve will stick to its hawkish policy path at next week's meeting of the Federal Open Market Committee. 

Survey data from the Institution of Supply Management showed that services sector activity picked up last month, with a reading of 56.5, up from 54.4 in October. Meanwhile, data from the Commerce Department showed that factory orders were up 1% in October, beating expectations for an increase of 0.7%. 

The readings compound fears that the US economy is not cooling off very quickly even after a year of aggressive interest rate hikes by the Fed. The expectation for next week's Fed meeting is still for the central bank to raise rates by a smaller 50 basis-points, but there is a possibility that rates will remain higher for longer. 

Deutsche Bank analysts Monday warned that the Fed would remain aggressive as inflation has the potential to surprise to the upside, while former US Treasury Secretary Larry Summers told Bloomberg that he believes interest rates are going to end up being a lot higher than markets expect. 

Here's where US indexes stood after the 4 p.m. closing bell on Monday: 

• S&P 500: 3,998.84, down 1.8%
• Dow Jones Industrial Average: 33,947.10, down 1.4% (483 points)
• Nasdaq Composite: 11,239.94, down 1.9% 

Here's what else happened today:

• Tesla stock fell 7% after reports the EV maker may scale back production at a factory in Shanghai. 
• Morgan Stanley's top stock strategist told investors it's time to sell, as the bear market rally since mid-October has run out of steam. 
• Stablecoin issuer Circle canceled plans to go public via SPAC merger. The company, which oversee the USDC stablecoin, said the decision was not impacted by the FTX disaster. 
• Bank of America warned that stocks could soon fall 20%. The analysts said that a coming recession would drag the market, and history shows that stocks usually bottom during a downturn and not before it hits. 

In commodities, bonds, and crypto: 

• Oil prices fell. West Texas Intermediate crude was down 3.3% to $77.31 a barrel. Brent, the international benchmark, fell 3% to $82.98 a barrel.
• Gold slipped 1.6% to $1,780 per ounce. 
• The 10-year Treasury yield rose nine basis points to 3.60%. The two-year bond ticked up to 4.41%. 
• Bitcoin edged lower to $16,945.