As investors considered inflation threats and the possible effect of a minimum corporation tax that would enable foreign governments to impose levies on big American firms, most US equities fell and treasury yields increased.
After rising to an all-time peak earlier in the day, the S&P 500 dropped, with decliners outnumbering gainers by around 3-to-1 in afternoon trade.
The Nasdaq 100 rose, boosted in part by a rise in Biogen following the approval of its Alzheimer's medication. The Dow Jones Industrial Average fell.
On Sunday, US Treasury Secretary Yellen said that a slightly higher interest-rate environment would be a plus. As a result, US ten-year treasury yields rose from the lowest since late April.
The sell-off in equities came when recent evidence, such as Friday's employment report, appeared to support the Fed's dovish monetary policy stance.
Investors are attempting to find a balance between the potential for higher interest rates and the need to participate in a rally driven largely by massive government stimulus.
The US consumer-price index report expected for Thursday will be one of the last major economic indicators released before the Fed’s rate decision later this month.