* Major US averages fall
* Dollar rises
* Gold falls after rising above $2,100
* Oil edges down
NEW YORK, Dec 4 (Reuters) - A gauge of global stocks fell for the first time in five sessions on Monday while Treasury yields rose as investors looked to upcoming U.S. labor market data for insight on the path of the Federal Reserve's rate policy.
Softening economic data and recent comments from Fed officials, including Chair Jerome Powell, have heightened expectations the bank has ended its rate hike cycle will begin to cut rates as soon as March of next year.
Expectations for a U.S. rate cut of at least 25 basis points (bps) in March are about 58%, according to CME's FedWatch Tool, up from about 22% a week ago.
Such expectations for Fed policy have helped fuel a strong rally in U.S. stocks, with each of the three major indexes on Wall Street capping their fifth straight week of gains on Friday.
"In the absence of a new catalyst with a market that's basically retraced its downdraft from August, September, and October, you really need something new and that really kind of comes back-end loaded this week with the jobs print," said Art Hogan, chief market strategist at B Riley Wealth in Boston.
The Dow Jones Industrial Average fell 152.91 points, or 0.42%, to 36,092.59, the S&P 500 lost 42.54 points, or 0.93%, to 4,552.09 and the lost 223.66 points, or 1.56%, to 14,081.37.
U.S. labor market data will kick off on Wednesday with the ADP National Employment Report and culminate on Friday with the governments payrolls report.
Stocks in Europe also edged lower, with the pan-European STOXX 600 index down 0.12% after earlier touching a four-month high, while MSCI's gauge of stocks across the globe lost 0.69% after hitting its highest level since August 2.
Attacks on commercial vessels in the Red Sea on Sunday risked increasing investor worries about the potential for a widening of the war between Israel and Hamas, potentially complicating the outlook for a rally that saw U.S. stocks crest a fresh closing high for the year last week.
Crude prices were slightly lower, however, as investor skepticism over the latest OPEC+ decision on supply cuts and uncertainty surrounding global fuel demand outweighed the risk of supply disruptions from the Middle east conflict.
U.S. crude dipped 0.39% to $73.78 a barrel. Brent crude fell to $78.7 per barrel.
The dollar rebounded, bouncing after three straight weeks of declines, with the dollar index, which tracks the greenback against a basket of six currencies, up 0.47 points, or 0.46%, to 103.74. The euro was down 0.6% on the day at $1.0818.
The bounce in the dollar weighed on gold, which pulled back after hitting a record high of $2,135.40 per ounce and was last down 2.19% to $2,025.54 an ounce.
U.S. Treasury yields moved higher, with the benchmark 10-year yield moving off three-month lows to stand 7 basis points higher at 4.29%. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, rose 8 basis points to 4.648%.
(Reporting by Chuck Mikolajczak; editing by Christina Fincher)
