Stocks declined Monday. The Dow fell 507 points to 23,592 while the S&P 500 slipped 54 points to 2,545. The Nasdaq lost 156 points to 6753.
The major averages finished sharply lower as market participants await further updates from the Federal Reserve. With the U.S. central bank widely expected to raise interest rates for a fourth time in 2018 on Wednesday, Chair Jerome Powell’s press conference following the conclusion of the FOMC meeting will be closely monitored for any updates on the Fed’s outlook for 2019. On the data front, a report from the New York Fed showed manufacturing activity expanded at the slowest rate in 19-months during December. A separate survey revealed homebuilder confidence slumped to the lowest level since May 2015 in December.
All 11 S&P 500 sectors finished lower led by the Real Estate and Utilities groups falling 3.7% and 3.3% respectively. Healthcare stocks also weighed on the major averages after a Texas judge ruled against the Affordable Care Act. Technology and Consumer Discretionary shares underperformed as Microsoft lost 3.0% to $102.89 and Amazon retreated 4.5% to $1520.91. Shares of Goldman Sachs slipped 2.8% to $168.01, following news Malaysia filed charges against the bank in regards to the 1MDB controversy.
Breadth was negative on issues by 13:2 on the NYSE and 5:1 on the Nasdaq. Composite NYSE Volume totaled more than 4.5 billion shares.
Treasuries were stronger as the yield on the 10-year slipped two basis points to 2.86%. In commodities, WTI crude declined 2.6% to $49.88/barrel, the lowest level since October 2017. COMEX gold added 0.8% to $1,247.40/ounce amid a weaker dollar.