NEW YORK: U.S. stocks ended Monday with their sharpest decline in six weeks, marking a fourth consecutive session of losses for the S&P 500.
The sharp drop follows six straight weeks of gains, which represents the longest positive streak in about a year.
“Today’s selloff does not make a lot of sense because there weren’t any big economic or corporate news. It is puzzling to see such a delayed reaction to a strong jobs report in an otherwise quiet week,” said Randy Frederick, managing director of trading & derivatives at Schwab Center for Financial Research.
The S&P 500 SPX, -0.98% fell 20.60 points, or 1%, to 2,078.60. The selloff was broad-based with nine of the index’s 10 main sectors closing lower.
The decline on the S&P 500 on Monday was the largest since Sept. 28. The next support level is at the index’s 200-day moving average, or 2,063, according to Frank Cappelleri, senior market technician at Instinet.
The Dow Jones Industrial Average DJIA, -1.00% lost 179.85 points, or 1%, to 17,730.48 with 28 of its 30 components finishing lower, led by Caterpillar Inc. CAT, -2.64% which shed 2.6%.
Meanwhile, the Nasdaq Composite COMP, -1.01% declined 51.82 points, or 1%, to 5,095.30.
“Markets cannot escape the gravitational pull of the Fed, so the stocks are under pressure because of the fact that we may see interest rates rise in December,” said Kim Forrest, senior analyst and portfolio manager at Fort Pitt Capital Group. Ultraloose monetary policy has been associated with a prolonged bull rally in stocks.
“It is also possible weak overnight data from China aided downward pressure on global equities,” may be pressuring stocks Forrest added.
