In an afternoon trading session, the US stock market experienced a slump on Monday amidst indications of a slowing US economy. The S&P 500 was down by 0.2%, following its sixth winning month in the last seven. Meanwhile, the Dow Jones Industrial Average dropped 236 points, or 0.6%, and the Nasdaq composite saw a slight increase of 0.1%.

The decline in stocks was accompanied by sliding Treasury yields in the bond market. The Institute for Supply Management reported that US manufacturing contracted for the 18th time in 19 months during May. The manufacturing sector has been adversely affected by high interest rates aimed at curbing high inflation rates.

The report highlighted that companies remain hesitant to invest due to current monetary policy and prevailing conditions. Timothy Fiore, chair of the Institute for Supply Management's manufacturing business survey committee, emphasized the elusive demand faced by businesses.

The market downturn was particularly evident in the oil and gas sector as crude oil prices plummeted. Amidst concerns of a slowdown, the demand for fuel is expected to dwindle, leading to a significant drop of 3.6% in the price of a barrel of US crude. Even with efforts by Saudi Arabia and other oil-producing nations to stabilize prices, Brent crude, the international standard, declined by 3.4%.

Leading the downward trend were stocks of oil and gas producers such as Halliburton, which experienced a sharp decline of 5.3%, and Exxon Mobil, which sank by 2.4%. These losses overshadowed notable gains made by other prominent players on Wall Street.

Nvidia, for instance, saw a 3.4% increase, bringing its year-to-date gain to an impressive 129%. The rise in stock value can be attributed to the company's unveiling of new products and services over the weekend. Nvidia has been delivering robust profits, countering criticism that investor enthusiasm for artificial intelligence (AI) may have been excessive. The company has emerged as a dominant force in propelling the S&P 500 upward.

Another noteworthy development amidst the market turbulence came from GameStop, which soared by 33.8%. This surge mirrored the company's earlier episode earlier this year that shook Wall Street and popularized the term "meme stock." A Reddit account associated with a central character involved in that episode announced the acquisition of 5 million shares, adding to the excitement. The post indicated that the position was valued at $181.4 million.

The reference to "meme stock" signifies companies whose stock prices experience substantial fluctuations driven by retail investors rather than fundamental changes in business prospects. Other meme stocks, including AMC Entertainment, also recorded gains on Monday, with shares rising by 13.7%.

Meanwhile, in a more traditional market move, Stericycle experienced a significant surge of 14.8% after the announcement of a $5.8 billion cash acquisition by Waste Management. However, Waste Management saw a decline of 4.9% in its stock price.

In the bond market, the 10-year Treasury yield fell from 4.50% to 4.40% compared to Friday's closing. Moreover, the two-year yield, which is seen as an indicator of the Federal Reserve's likely future actions, decreased from 4.88% to 4.82%.

Investors are hopeful that the US economy will strike the right balance, slowing down sufficiently to alleviate inflationary pressures without plunging into a recession. This, in turn, could pave the way for the Federal Reserve to cut its main interest rate. Currently, the Fed has maintained the federal funds rate at its highest level in two decades to curb inflation, which has had a dampening effect on the economy and investment prices.

Looking ahead, the upcoming week will see the release of several high-profile economic reports that may lead to further fluctuations in yields. This includes job opening figures for April and the latest monthly update on overall job growth and workers' wages, both of which are expected to have a significant impact on market sentiment.

Amidst the global stock market landscape, India's Sensex rallied by 3.4% following the conclusion of the country's six-week-long national election. Most exit polls project Prime Minister Narendra Modi securing a third consecutive term in power. Conversely, stocks in Mexico experienced a sharp decline of 5.7% after Claudia Sheinbaum claimed victory in the country's presidential election.

With the exception of Shanghai and London, stock indexes in Europe and Asia closed on a positive note, indicating mixed global market sentiment and ongoing fluctuations in different regions.