Technology stocks weighed on the S&P 500 and the Nasdaq on Monday as caution set in ahead of the Federal Reserve's pivotal monetary policy decision, due later in the week, with a majority of traders pricing in a steep reduction in borrowing costs.

Apple shares dropped Monday after an analyst warned of weaker iPhone 16 demand. The Fed begins its key two-day policy meeting on Tuesday.

With the Federal Reserve set to begin cutting interest rates this week, analysts believe tech stocks could get a big boost.

Tech stocks dragged on U.S. indexes and the dollar touched a more than one-year low against the yen on Monday as all eyes looked to a Federal Reserve meeting later this week that is expected to usher in a hotly anticipated easing cycle.

Wall Street was mixed early Monday as optimism over a potentially big rate cut from the Federal Reserve this week boosted most sectors, with the exception of technology stocks. Futures for the S&P 500 were unchanged before the bell,