The Dow Jones Industrial Average fell by 81.33 points, or 0.21 percent, to 39,431.51, snapping an eight-day winning streak. The S&P 500 sank 1.26 points, or 0.02 percent, to 5,221.42. The Nasdaq Composite Index increased by 47.37 points, or 0.29 percent, to 16,388.24.
Nine of the 11 primary S&P 500 sectors ended in red, with industrials and financials leading the laggards by losing 0.45 percent and 0.41 percent, respectively. Meanwhile, technology and real estate rose 0.48 percent and 0.29 percent, respectively.
Federal Reserve Vice-chair Phillip Jefferson emphasized on Monday that given an otherwise healthy economy, the central bank should maintain a steady stance on monetary policy until there is clear evidence that inflation is once again moderating back to the 2 percent target.
"I think it is appropriate to keep the policy rate in restrictive territory," Jefferson said.
On the economic front, U.S. consumers posted heightened expectations for price increases in both the near and longer terms in April, driven by elevated inflation in home prices as well as fuel and energy costs, as indicated by a New York Federal Reserve survey released on Monday.
On a one-year basis, the expectation rose to 3.3 percent, up 0.3 percentage points from March and reaching the highest level since November 2023. Regarding the five-year outlook, the expectation increased to 2.8 percent, up 0.2 percentage points. However, the outlook for the three-year horizon declined to 2.8 percent, down 0.1 percentage points.
Barclays noted on Monday that in Europe, value stocks are still outperforming, while in the United States, growth stocks are currently seeing gains due to improved forward guidance. "Rates fell from their recent highs after the Fed's dovish turn, further boosting the outlook for growth," strategist Venu Krishna wrote.
UBS asset allocation head Jason Draho said that the next two weeks should be noisy with the consumer price index and Nvidia earnings on deck. These can set the tone for the beginning portion of summer trading. "Inflation and NVIDIA earnings data that exceed expectations could set the stage for an early summer melt-up," he said.
GameStop shares surged on Monday, closing up 74.4 percent at 30.45 U.S. dollars, with trading volume reaching its highest level since March 2021. Due to volatility, trading was halted multiple times. This surge comes as part of a broader trend in meme stocks. Other popular meme stocks, such as AMC Entertainment, also saw significant gains, with a 78.35 percent jump on Monday.
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