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The S&P 500 fell on Monday as investors struggled to carry the market’s strong May momentum into the new month.
The Dow Jones Industrials collapsed 248.97 points to 38,436.35.
The much-broader index slumped 8.55 points to 5,268.96.
The NASDAQ remained positive 54.08 points to 16,789.10.
A technical issue at the New York Stock Exchange affected price quotes for several stocks. The NYSE said it was investigating a technical issue related to the limit up and limit down bands, but it was unclear how many stocks were affected.
Elsewhere, the U.S. manufacturing sector showed signs of slowing, with the ISM manufacturing index measuring 48.7 in May, sending Treasury yields and the dollar lower. A reading below 50 is an indication of a contraction. Cyclical stocks whose fortunes are closely tied to economic growth such as energy, industrial and materials companies led the decline.
Nvidia rose 2% higher after announcing a new suite of artificial intelligence chips, succeeding the previous model by just three months.
Elsewhere, the U.S. manufacturing sector showed signs of shrinkage last month, with the ISM manufacturing index measuring 48.7 in May, which sent yields lower. A reading below 50 is an indication of a contraction.
The three averages all closed May more than 1% below their record highs, even with the Dow adding more than 500 points on Friday. The NASDAQ fell 1.1% last week as chip stocks, including Nvidia, stumbled.
The first week of June is brimming with further economic updates. Investors also await private payroll data on Thursday from ADP followed by a key jobs report on Friday.
Prices for the 10-year Treasury gained a bit of ground, lowering yields to 4.41% from Friday’s 4.50%. Treasury prices and yields move in
opposite directions.
Oil prices shed $2.82 to $74.17 U.S. a barrel.
Gold prices docked $16.80 to $2,362.60.
