Wall Street and US Treasuries fell overnight amid concern the US Federal Reserve might raise interest rates sooner than anticipated.
Fed policy makers are set to begin their next two-day meeting on September 16 amid consistent evidence of the accelerating pace of growth in the world's largest economy.
"Evidence based on surveys, market expectations, and model estimates show that the public seems to expect a more accommodative policy than Federal Open Market Committee participants," Jens Christensen, a senior economist, and Simon Kwan, vice president of financial research, said in a San Francisco Fed report on Monday.
"The public may also be less uncertain about these forecasts than policymakers," they said.
In late afternoon trading in New York, the Dow Jones Industrial Average slid 0.60 per cent, the Standard & Poor's 500 Index declined 0.68 per cent and the Nasdaq Composite Index shed 0.82 per cent.