The Dow Jones Industrial Average fell 162.26 points, or 0.41 percent, to 39,313.64. The S&P 500 lost 15.99 points, or 0.31 percent, to 5,218.19. The Nasdaq Composite Index declined 44.35 points, or 0.27 percent, to 16,384.47.
Eight of the 11 primary S&P 500 sectors ended in red, with industrials and technology leading the laggards by losing 0.68 percent and 0.52 percent, respectively. Meanwhile, energy and utilities led the gainers by rising 0.91 percent and 0.46 percent, respectively.
"SP500 is losing ground as traders take some profits off the table near historic highs. Treasury yields have moved higher, putting some pressure on major indices," said Vladimir Zernov, analyst with market information supplier FX Empire.
The yield of U.S. ten-year Treasury bills gained 4.4 basis points closing at 4.246 percent on Monday.
Fed Governor Lisa Cook endorsed a cautious approach to easing monetary policy on Monday, noting that although housing-services inflation remains high, the slower rate of increase in new rental leases indicates a potential decline in the future.
Chicago Fed President Austan Goolsbee also acknowledged the surprising persistence of housing inflation but expressed optimism that it would eventually subside. He mentioned that the main challenge in controlling inflation this year, after a gradual decrease in 2023, has been related to housing costs, which play a significant role in consumer spending and inflation metrics.
In corporate news, Boeing shares rose more than 1 percent after the plane manufacturer embroiled in a crisis surrounding safety issues announced that its CEO Dave Calhoun will step down at the end of the year.
Chipmaker Micron soared 6 percent to fresh highs while artificial intelligence darling Nvidia gained less than 1 percent.
Cryptocurrency-related stocks like MicroStrategy and Coinbase Global soared as Bitcoin jumped above 70,000 dollars for the first time since March 15. Reddit shares popped nearly 30 percent on their third day of trading. The social media platform stock gained 48 percent on its first day of trading last Thursday. On Monday, the stock closed just above 59 dollars per share.
The most significant economic data release of the week will occur on Friday, with the unveiling of the Personal Consumption Expenditures (PCE) price index.
Latest comments