WASHINGTON (dpa-AFX) - After ending last Friday's trading sharply higher, stocks moved mostly lower over the course of the trading day on Monday. The major averages turned in a lackluster performance for much of the session before coming under pressure going into the close.
The major averages all finished the day in negative territory. The Dow slid 349.27 points or 0.8 percent to 45,282.47, the S&P 500 fell 27.59 points or 0.4 percent to 6,439.32 and the Nasdaq sipped 47.24 points or 0.2 percent to 21,449.29.
The weakness on Wall Street partly reflected profit taking, as some traders looked to cash in on the strong gains posted last Friday, which lifted the Dow to a new record closing high.
The rally seen during last Friday's session came as remarks from Federal Reserve Chair Jerome Powell seemed to indicate the central bank is likely to lower interest rates next month.
Selling pressure was relatively subdued for most of the day, however, as traders seemed reluctant to make more significant ahead of several key events later this week.
Traders are likely to keep a close eye on earnings news from Nvidia (NVDA), with the AI darling and market leader due to report its second quarter results after the close of trading on Wednesday.
The latest U.S. economic data is also likely to attract attention, as the Commerce Department is due to release a report on Friday that includes the Fed's preferred readings on consumer price inflation.
Reaction to reports on durable goods orders, consumer confidence and second quarter GDP may also impact trading in the coming days.
On the U.S. economic front, the Commerce Department released a repot this morning showing new home sales in the U.S. decreased from an upwardly revised level in the month of July.
The Commerce Department said new home sales fell by 0.6 percent to an annual rate of 652,000 in July after surging by 4.1 percent to an upwardly revised rate of 656,000 in June.
Economists had expected new home sales to climb by 0.5 percent to an annual rate of 630,000 from the 627,000 originally reported for the previous month.
Sector News
Biotechnology stocks showed a significant move to the downside over the course of the session, with the NYSE Arca Biotechnology Index slumping by 2.2 percent after ending last Friday's trading at a nearly six-month closing high.
Considerable weakness also emerged among transportation stocks, as reflected by the 1.8 percent loss posted by the Dow Jones Transportation average.
Pharmaceutical, healthcare and utilities stocks also came under pressure as the day progressed, while oil producer stocks saw some strength amid a sharp increase by the price of crude oil.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index climbed by 0.4 percent, while China's Shanghai Composite Index surged by 1.5 percent.
Meanwhile, most European stocks moved to the downside on the day, with the U.K. markets closed for a public holiday. While the French CAC 40 Index tumbled by 1.5 percent, the German DAX Index fell by 0.4 percent.
In the bond market, treasuries gave back ground after moving sharply higher during last Friday's session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up 1.5 basis points to 4.275 percent.
Looking Ahead
Trading on Tuesday may be impacted by reaction to the latest U.S. economic data, including reports on durable goods orders and consumer confidence.
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