The Globe and Mail reports in its Tuesday edition that Canada's main stock index closed lower Monday, while U.S. stock markets also fell on a weakened outlook for interest-rate cuts. A Reuters dispatch to The Globe says that Wall Street's three major indexes closed down around 1 per cent on Monday while Treasury yields rose as traders tamped down bets for Federal Reserve interest-rate easing and worried about the Middle East conflict's impact on oil prices. Investors continued to digest the big job numbers beat in the U.S. that came out Friday, which has forced a rethink on how quickly the Fed will cut rates. Ten-year Treasury yields moved from 3.71 per cent a week ago to more than 4 per cent Monday. The shift means markets are now betting on a quarter-point rate cut at the next Fed decision, rather than a bigger reduction. The Dow lost 398.51 points, closing at 41,954.24, while Nasdaq was down 213.95 points at 17,923.90. The S&P/TSX Composite Index was down 60.12 points to close at 24,102.71. The main outliers in Canadian markets were energy companies, as crude prices continued to rally because of instability in the Middle East. The November crude oil contract was up $2.76 (U.S.) at $77.14 (U.S.) a barrel.