The big banks generally led the march lower on Monday, with the Dow Jones Industrial Average slipping 35.63 points to 24,393.60.
The S&P 500 lost 0.73 points, or 0.04 percent, to 2,751.72 and the Nasdaq Composite added 6.66 points, or 0.09 percent, to 7,692.82.
The Dow’s downward slide was led by Dow component Boeing, which slid 1.9 percent after President Donald Trump announced his intent to block a potential deal between Boeing and rival aerospace firm Airbus.
Industrials were the worst performing sector on Monday, giving up 1.5 percent. The industrials sector fell 0.5 percent, showing a quarter of its gains on the year.
Dow Jones Industrial Average
The housing sector, a strong pillar of the economy, led the way to record highs ahead of the 2008 collapse. It then lost ground until this year, hurt by rising mortgage rates and a persistent shortage of new homes. The financial sector also fell on Monday, down 0.4 percent.
“It looks like we’ve made a little bit of a peak in terms of interest rates,” said Stephen Massocca, Senior Vice President at Wedbush Securities in San Francisco.
“There’s a little bit of a concern that the housing market has slowed and that maybe interest rates will help that along. Interest rates have been pushing the Dow down.”
Technology shares outperformed, rising 0.5 percent. The tech sector remains nearly 20 percent higher on the year.
“The technology group has been outstanding over the last few months. These are well-known companies like Apple, Google, and Facebook. Which have been outstanding outperformers,” said Jason Pride, Director of Investment Strategy at Glenmede in Philadelphia.
The Dow Jones industrials and the S&P 500 are now trading within a range that suggests some stability. Chief Investment Strategist at SUNTRUST Asset Management in New York.
U.S. Treasury yields fell on Monday, with the benchmark 10-year yield hitting a seven-month low. As the U.S. bond market closed ahead of the Fourth of July holiday.
U.Topic: S&P 500
Europe’s broad FTSEurofirst 300 index rose 0.38 percent to close at 1,625.92.
China’s benchmark Shanghai Composite closed up 2.28 percent at 3,147.67 points.
The Dow Jones Industrial Average is down 2.68 percent to 24,246.12 and the S&P 500 is down 2.21 percent to 2,742.67, both suffering their worst losses in six weeks.
The Nasdaq Composite added 0.38 percent to 7,632.61.
An index of industrial stocks fell 0.3 percent, led by losses in aerospace and industrial parts makers. Caterpillar fell 1.5 percent and United Technologies lost 1.2 percent.
Gold gained nearly 1 percent to reach its highest level in almost a month. Industrial commodities such as oil and metals also advanced, with copper up 0.8 percent.
“If you’ve got a look at the commodities, there’s some strong numbers there,” said Massocca.
The U.S. dollar extended its decline against the euro on Monday after data showing a surge in euro zone economic confidence failed to offset the effect of the market gyrations that have pushed Treasury yields sharply lower.
In U.S. government bond trading, benchmark 10-year notes were up 10/32 in price to yield 2.3311 percent, down from 2.372 percent late on Friday.
The U.S. dollar index fell 0.9 percent to 88.137, while the euro rebounded, rising 0.2 percent to $1.1606.
In emerging markets, the Turkish lira and Russian rouble bounced back, leading gains in an otherwise flat session for major emerging market currencies.
MSCI’s emerging markets index had fallen to its lowest level in three months earlier in the day.
Among commodities, oil rose after a small increase in stockpiles at the U.S. Benchmark delivery point caused the market to retreat from the five-month highs hit last week on worries about escalating tensions in the Middle East.v