Stocks finished mostly lower Monday, as weakness in internet-based company stocks weighed on investor sentiment. The Dow finished just above the flat line at 24,819, while the S&P 500 slipped 0.3%. The Tech-heavy Nasdaq Composite tumbled 1.6%, with the index closing in correction territory, defined as a more than 10% decline from its recent record high.
Concerns of increased regulatory scrutiny on the Google parent Alphabet, Facebook, Apple, and Amazon sent the oft-cited “FAANG” group shedding 4.6% in the session. Alphabet fell 6.1% to $1,038.74 while Facebook paced the cohort’s decline with a 7.5% tumble to $164.15. The downbeat session follows a tumultuous end to May last week, in which the major averages posted their first monthly decline of the year amid persistent trade tensions.
Breadth was positive on issues by 7:3 on the NYSE and even on the Nasdaq. Composite NYSE Volume was more than 3.8 billion shares.
Investors continued to seek perceived safe-haven assets, pushing Treasury yields lower. The yield on the benchmark 10-year note slid five basis points to 2.08%. Comments from the St. Louis Fed President James Bullard calling for a rate cut “soon” also inspired the yield on the two-year note to extend a five-day slide, the longest retreat since January. On the data front, a gauge of manufacturing activity from ISM came in at 52.1 in May, its lowest reading since October 2016.
In commodities, WTI crude fell 1.3%, extending its declines for the fourth consecutive day. COMEX gold jumped 1.6%, hitting a 10-week high, amid a weaker U.S. dollar.