The Dow slid 115.29 points, or 0.30% to end at 38,571.03, the S&P 500 rose by 0.11% to close the session at 5,283.40, while the Nasdaq Composite gained 0.56% to 16,828.67
The Dow Jones Industrial Average began June’s trading with a decline after weak U.S. manufacturing data raised concerns about the strength of the economy. Banks, industrials and other shares dependent on economic growth led the decline.
The 30-stock Dow slid 115.29 points, or 0.30% to end at 38,571.03. The S&P 500 rose by 0.11% to close the session at 5,283.40, while the Nasdaq Composite gained 0.56% to 16,828.67.
Cyclical stocks whose fortunes are closely tied to economic growth slipped, with the energy, industrials and materials sectors ending in the red. Earlier, 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 down. A reading below 50 is an indication of a decline.
On Monday, Nvidia advanced around 5% after announcing a new suite of AI chips, a sign it is prepared to fight to stay ahead in the highly competitive space. The chipmaker said it will upgrade its AI chip architecture on an annual basis.
Wall Street is coming off a strong May, with all three major averages notching their sixth positive month in seven. The Nasdaq gained 6.9% in May, its best month since November 2023.
However, the rally seemed to lose steam near the end of the month. The three averages all closed May more than 1% below their record peaks, even with the Dow adding more than 500 points on Friday. The Nasdaq dropped 1.1% last week as chip stocks slipped.
With technicals still stretched, a little fear baked in, and sentiment looking optimistic, we are sticking with our call for volatility to pick up over the summer, Wolfe Research chief investment strategist Chris Senyek wrote Monday.
