WASHINGTON (dpa-AFX) - Following the strong performance seen during the previous week, stocks showed a lack of direction over the course of the trading day on Monday. The major averages spent the day bouncing back and forth across the unchanged line before close slightly lower.
The Dow slipped 60.95 points or 0.1 percent to 53,975.98, the Nasdaq fell 85.26 points or 0.3 percent to 26,605.36 and the S&P 500 edged down 4.53 points or 0.1 percent to 7,753.11.
The choppy trading on Wall Street came as traders took step back to assess the recent strength in the markets, which saw the S&P 500 reach a new record closing high last Friday.
Traders may also have been reluctant to make significant moves ahead of the release of key U.S. inflation data in the coming days.
The Labor Department is scheduled to release reports on consumer and producer inflation on Wednesday and Thursday, respectively.
On the heels of last Friday's report showing an unexpected decrease in U.S. employment, the data could impact the outlook for interest rates.
'Consensus forecasts point to a modest easing in both headline and core CPI, which, if realized, would reinforce the view that the Fed can afford to remain patient,' said Daniela Hathorn, Senior Market Analyst at Capital.com.
She added, 'That would likely keep downward pressure on Treasury yields and provide further support for risk assets.'
Traders also kept an eye on developments in the Middle East, where Iran and Oman are reportedly close on a deal regarding the Strait or Hormuz but Tehran has indicated it is resisting talks with the U.S.
Iran has warned that it will not reopen the Strait of Hormuz unless the United States meets a series of conditions, denting hopes for a return to stability in global energy markets and leading to a sharp increase in crude oil prices.
Sector News
Despite the lackluster performance by the broader markets, energy stocks moved sharply higher along with the price of crude oil.
With U.S. crude oil futures surging by nearly 5 percent, the Philadelphia Oil Service Index soared by 5.8 percent and the NYSE Arca Oil Index shot up by 5.3 percent.
Significant strength was also visible among software stocks, as reflected by the 1.9 percent gain posted by the Dow Jones U.S. Software Index.
On the other hand, the spike in crude oil prices contributed to substantial weakness among airline stocks, with the NYSE Arca Airline Index plunging by 4.4 percent.
Semiconductor stocks also showed a considerable move to the downside, dragging the Philadelphia Semiconductor Index down by 2.9 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index shot up by 2.1 percent, while China's Shanghai Composite Index advanced by 0.7 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index fell by 0.4 percent, the German DAX Index closed just above the unchanged line and the French CAC 40 Index crept up by 0.1 percent.
In the bond market, treasuries moved to the downside after ending last Friday's trading slightly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price climbed 3.9 basis points to 4.699 percent.
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