Stocks closed broadly lower on Wall Street Monday, erasing some of the major indexes’ recent gains, though the market remains on track to end the year with its best performance since 2013.
The pullback ended a two-day winning streak by the S&P 500. The benchmark index has risen five straight weeks, notching multiple all-time highs along the way. It’s on track to end December with its fourth consecutive monthly gain.
Technology, communication services and health care stocks accounted for much of the selling Monday. Retailers and other companies that rely on consumer spending also fell.
Homebuilders fell after a report on pending U.S. home sales in November came in below analysts’ expectations. Shares in utilities and real estate sector companies fared the best, ending with only tiny losses, as investors shifted assets to high-dividend stocks and other bond proxies.
“There could be a few big institutions out there that are taking some profits,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. “Big players can have a bigger influence on the market when the volumes are low.”
The S&P 500 dropped 18.73 points, or 0.6%, to 3,221.29. The Dow Jones Industrial Average fell 183.12 points, or 0.6%, to 28,462.14. The Nasdaq composite lost 60.62 points, or 0.7%, to 8,945.99.
The Russell 2000 index of smaller company stocks slid 4.88 points, or 0.3%, to 1,664.15.
Bond prices fell. The yield on the 10-year Treasury note rose to 1.89% from 1.87% late Friday.
Despite the downbeat start to the holiday shortened week, the S&P 500 is on pace to finish the year 28.5% higher, which would make it the strongest annual gain for the market since 2013.