(For a Reuters live blog on U.S., UK and European stock

markets, click/ or type LIVE/ in a news window.)

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Moderna ( MRNA ) slides after cutting 2025 sales forecast

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Chip stocks fall as US tightens grip on AI chip flows

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Health insurers rise after US proposes 2026 payment rates

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Nasdaq hits more than one-month low

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Indexes: Dow up 0.22%, S&P 500 slips 0.63%, Nasdaq off

1.33%

(Updates with mid-session trading)

By Johann M Cherian and Sukriti Gupta

Jan 13 (Reuters) -

U.S. stocks declined on Monday, with the S&P 500 hitting a

two-month low as bond yields surged following strong payroll

data last week, reinforcing bets that the Federal Reserve will

maintain a hawkish stance through most of the year.

At 11:39 a.m. ET, the Dow Jones Industrial Average

rose 93.86 points, or 0.22%, to 42,032.31, the S&P 500

lost 36.53 points, or 0.63%, to 5,790.51, and the Nasdaq

Composite lost 254.71 points, or 1.33%, to 18,906.92.

Wall Street's fear gauge rose 1 point, touching a

more than three-week high.

The domestically sensitive Russell 2000 index

declined 0.9% to its lowest level since September 2024,

extending Friday's decline, which saw it enter correction

territory after falling more than 10% from its November intraday

record high.

Pressuring stocks, yields on longer-dated Treasury bonds

are pinned at multi-month highs.

At one point, traders were no longer fully pricing in

even one Fed rate cut this year, according to

data compiled by LSEG

, from about 43 basis points before Friday's job figures.

Bets currently reflect expectations of a 25.6 bps easing by the

Fed's December meeting.

"In the early stages of recalibrating monetary policy,

investors tend to take a bit of a risk-off attitude," said Art

Hogan, chief market strategist at B Riley Wealth.

"But the important part of what has changed thus far

this year is that economic data being positive at the end of the

day will likely be a net positive for corporate earnings and for

markets."

Five of the 11 S&P 500 sectors declined, led by a 2%

drop in Utilities. Megacaps were down, with Tesla

sliding 1.5%, Apple ( AAPL ) dropping 2.4% and Alphabet

losing 1.6%, sending the Nasdaq to a more than

one-month low.

On the flip side, Energy rose 2.2%, tracking

higher crude prices. The S&P 500 equal-weighted index

was up 0.1%.

The main indexes logged their second consecutive week of

declines in the previous session after multiple reports pointed

to better-than-expected economic activity, raising worries that

inflation could be running high.

Investors also priced in the likelihood that the incoming

Donald Trump administration's policies - such as tariffs and a

clampdown on illegal immigration - could threaten global trade

and fuel price pressures when the Fed has also signaled a cloudy

monetary policy outlook. Trump is expected to take office on

Jan. 20.

The Consumer Price Index numbers and the central bank's

Beige Book on economic activity, both due on Wednesday, will

likely help investors gauge the Fed's policy outlook.

Some chip stocks fell, with Nvidia ( NVDA ) dropping 2.9%

and Advanced Micro Devices ( AMD ) slipping 0.5% after the U.S.

government said it would further restrict

artificial-intelligence chip and technology exports.

Moderna ( MRNA ) slid 21.8% to the bottom of the S&P 500

after slashing its 2025 sales forecast by $1 billion.

Dow component UnitedHealth Group ( UNH ) added 4.3%, CVS

Health ( CVS ) rose 5.6% and Humana climbed 7.4% after

the Biden administration

proposed 2026 reimbursement rates

for Medicare Advantage plans run by private insurers, which

would result in a 2.2% increase in payments.

Declining issues outnumbered advancers by a 1.74-to-1

ratio on the NYSE, and by a 2.22-to-1 ratio on the Nasdaq.

The S&P 500 posted two new 52-week highs and 23 new

lows, while the Nasdaq Composite recorded 19 new highs and 209

new lows.