With the start of the new year, investors bid farewell to the Santa Claus Rally, as the U.S. stock market extended its weak momentum into January, logging five consecutive losing sessions, the longest negative streak since April.

Just weeks before Donald Trump's second presidential term begins, a sense of uncertainty looms large as investors await clarity on policies that could reshape the American economy and beyond.

The bond market is flashing warning signs that could ripple across the economy. Treasury yields have continued their sharp ascent, with the 30-year yield hitting 4.8%, its highest level in over a year. Rising yields are often seen as a harbinger of higher borrowing costs and potential inflationary pressures, and investors are taking notice.

Higher bond yields typically challenge the stock market, as they make debt financing more expensive for companies while reducing the relative attractiveness of equities.

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