• Stocks turned lower on concerns that the Fed may not cut rates as much as expected.
• Palantir shares soared after the company beat expectations for fourth-quarter revenue.
• Social media site Snap laid off 10% of its workforce.

Here are the most important news items that investors need to start their trading day:

1. Melancholy Monday

The Dow Jones Industrial Average dropped more than 250 points as traders grew concerned that the Federal Reserve might not cut rates as much as expected. The Dow fell 274.30 points, or 0.71%, while the S&P 500 pulled back from its record high, dropping 0.32% and the Nasdaq Composite slipped 0.2%. Meanwhile, Treasury yields spiked more than 13 basis points to hit 4.166% on the heels of strong economic data. For reference, the benchmark yield traded around 3.81% last week. Looking ahead, Tuesday is roughly the halfway point of the earnings season. Follow live market updates.

2. Next tier

Palantir shares rocketed up more than 17% in after-hours trading after the company reported fourth-quarter earnings results. Palantir's $608.4 million in revenue surpassed the expectations of $602.4 million by analysts polled by LSEG. The company, which is known for its defense and intelligence work with the U.S. government, is rolling out an artificial intelligence platform. CEO Alex Karp struck a positive note about that effort, saying the company's expansion and growth "have never been greater" and that demand for large language models "continues to be unrelenting."

3. Snapped

Snap is the latest tech company to conduct layoffs in 2024. The social media company said Monday that it would cut 10% of its workforce, or about 500 employees. It said the move was in part to "promote in-person collaboration." It's not the first round of layoffs for Snap, which has conducted multiple rounds of headcount reductions since 2022, including when it laid off 20% of its staff in August 2022. Tech companies cut nearly 24,000 jobs in January alone.

4. Mortgage rates

The average rate on the 30-year fixed mortgage hit 7.04% on Monday. It's the first time rates have been above 7% since December and comes on the heels of stronger-than-expected January jobs and manufacturing reports. Mortgage rates have been on a roller coaster recently, briefly topping 8% in October for the first time in 20 years and then falling again. Mortgage rates don't follow the Fed, but they loosely move along with the 10-year Treasury yield, which can be strongly influenced by Fed statements. Spring is also an important time for the housing market, meaning rates are more important than ever amid high and still-rising home prices.

5. Sales slump

Both Starbucks and McDonald's said the Israel-Hamas war has hurt their sales. The chains, two of the biggest American restaurant companies, also said the war will likely continue to hit demand in future quarters. Starbucks reported its earnings last Tuesday and has seen its stock drop about 2% since. It was the target of boycotts from conservatives after its workers union posted a message in support of Palestinians, which Starbucks sought to distance itself from; sales in the Middle East also fell. McDonald's stock, meanwhile, fell nearly 4% Monday. The burger chain faced boycotts from majority Muslim countries and saw weaker sales in the Middle East after its Israeli licensee offered discounts to soldiers.

— CNBC's Samantha Subin, Hakyung Kim, Ashley Capoot, Rohan Goswami, Diana Olick and Amelia Lucas contributed to this report.

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