Stocks finished slightly lower on Wall Street on Monday, giving back some of their recent gains after the major indexes had their best week in more than a year.
After giving up an early gain and bouncing around for much of the day, the S&P 500 fell less than 0.1%. The Dow Jones Industrial Average was down 0.6%, while the Nasdaq Composite was down 0.4%.
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The market’s indecision comes a day after it had its best week since November 2020, and as Federal Reserve Chair Jerome Powell stated that the central bank was willing to act more aggressively if necessary to manage inflation.
Bond yields rose sharply following Powell’s remarks. The yield on the 10-year Treasury jumped to 2.30% from 2.14% late Friday.
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The S&P 500 fell 1.94 points to 4,461.18, snapping a four-day winning streak for the benchmark index. The Dow dropped 201.94 points to 34,552.99, and the Nasdaq slid 55.38 points to 13,838.46. Smaller company stocks fared worse than the broader market. The Russell 2000 index lost 20.21 points, or 1%, to 2,065.94.
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Retailers and other companies that rely on consumer spending, and communication and technology stocks, were the biggest drag on the S&P 500 Monday. Home Depot slid 3.3%, Facebook parent, Meta Platforms, fell 2.3%, and Microsoft fell 0.4%.
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Energy stocks made solid gains as oil prices gained ground. U.S. benchmark crude oil jumped 7.1% to settle at $112.12 per barrel, while Brent, the international standard, climbed 7.1% to settle at $115.62. Exxon Mobil gained 4.5%.
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Russia’s invasion of Ukraine added to concerns that inflation could worsen by pushing energy and commodity prices higher. Oil prices are up more than 45% this year and prices for wheat and corn have also surged.
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Outside of those broader concerns, several stocks made big moves on company-specific news. Alleghany, a reinsurance company, soared about 25% after agreeing to be bought by Warren Buffett’s Berkshire Hathaway. Media rating agency Nielsen slid 6.9% after rejecting an acquisition offer. Boeing fell 3.6% after one of its planes crashed in China with 132 people on board.