Stocks closed broadly lower on Wall Street Monday as losses in technology, health care and financial companies outweighed gains elsewhere in the market.
The selling snapped a three-day winning streak for the S&P 500, cutting into its gain from last week.
Trading was mostly muted as investors looked ahead to a busy week of economic reports and an interest rate policy update from the Federal Reserve. The market also remained focused on developments in the trade negotiations between the U.S. and China.
Both sides have been working toward a limited “phase 1” deal that investors hope can at least avert new U.S. tariffs from kicking in on $160 billion of Chinese imports on Sunday. That would raise prices on key products, including cell phones and laptops, and threaten to affect consumers.
“With the deadline being Sunday, most people don’t think that new tariffs will be put in place, but they also don’t expect a phase 1 (deal) to be signed this week,” said Sam Stovall, chief investment strategist at CFRA.
The S&P 500 index lost 9.95 points, or 0.3%, to 3,135.96. The Dow Jones Industrial Average fell 105.46 points, or 0.4%, to 27,909.60. The Nasdaq dropped 34.70 points, or 0.4%, to 8,621.83. The Russell 2000 index of smaller company stocks gave up 4.22 points, or 0.3%, to 1,629.62.
Major stock indexes in Europe also closed broadly lower.
Bond prices rose. The yield on the 10-year Treasury fell to 1.82% from 1.84% late Friday.
After strong gains in November, U.S. stock indexes have mostly pulled back this month ahead of the scheduled rollout of new U.S. tariffs on Chinese goods this weekend.
A Chinese official said Monday that the nation wants a prompt settlement, but gave no details on progress toward a potential deal. China made a conciliatory gesture last week when it said it would waive tariffs on American soybeans and pork.
Technology sector stocks, which have been particularly sensitive to developments on trade because many of the companies rely on China for sales and supply chains, helped drag the market lower Monday. Apple fell 1.4% and chipmaker Micron Technology slid 3.1%.