Stocks slip on Wall Street, pull S&P 500 below record
Stocks fell on Wall Street Monday in a sluggish start to the week as investors await the latest take from the Federal Reserve on inflation.
The S&P 500 fell 0.3 percent as of 12:50 p.m. Eastern. The Dow Jones Industrial Average fell 253 points, or 0.7 percent, to 34,224 and the Nasdaq rose 0.4 percent.
The benchmark S&P 500 is sitting just below its latest record high set on Friday. It is also coming off its third weekly gain in a row. Trading has been choppy as investors gauge the economic recovery and rising inflation’s impact on its trajectory and the Fed’s next move.
Banks, health care and industrial companies had some of the broadest losses. Big technology stocks helped offset some of the slide. Apple rose 1.6 percent and Adobe rose 3.2 percent.
Several large communications companies also made gains. Facebook rose 1 percent and Netflix gained 2.7 percent.
The Fed is meeting this week and will release a statement on Wednesday. Investors have been worried that the Fed could ease up on bond purchases and other stimulus measures as the economy recovers. No policy changes are expected immediately, but comments on a shift in policy could jostle an already skittish market.
Fed officials have maintained that any rise in inflation will be temporary as the economy recovers.
Lordstown Motors sank 16.7 percent after the CEO and CFO resigned as problems mount for the startup electric truck maker.
Novavax gave up most of its early gains and was up 0.3 percent. The vaccine maker said its COVID-19 shot was highly effective against the disease and also protected against variants in a large study in the U.S. and Mexico. The company is facing raw-material shortages, though, and plans to seek authorization for the shots by the end of September.
Bond prices fell. The yield on the 10-year Treasury note rose to 1.50 percent from 1.46 percent late Friday.
European markets were mostly higher. Several markets in Asia were closed for a holiday.