New York – U.S. stocks closed sharply lower Monday, with the Dow Jones industrial average falling almost 100 points and the Nasdaq declining for a seventh day, as investors remained skittish ahead of key inflation data and three speeches from Federal Reserve chief Ben Bernanke this week.
The Dow closed down 99.34 points to 10,792.58.
Of the Dow industrials’ 30 components, 26 traded lower. The Nasdaq Composite Index fell 43.74 points, or 2.1 percent, to 2,091.32, its lowest level since last Oct. 28.
The S&P 500 dipped 15.90 points, or 1.3 percent, to 1,236.40.
Stocks were weak through the session, but losses mounted in the final half hour in nervous anticipation of wholesale and consumer price data for May due today and Wednesday.
“It’s the three topics of energy prices, a possible economic slowdown and what the Fed will do next that has the market rattled,” said Art Hogan, chief market strategist at Jefferies & Co.
Just a month ago, the market tumbled more than 200 points when the April CPI core rate, which excludes food and energy prices, came in above 2.3 percent on an annualized basis, placing it above the Fed’s 2 percent comfort zone. Economists are forecasting the same reading for May.
“Parsing all the recent comments from Bernanke and other Fed officials, it’s clear the central bank does not consider a core inflation rate of 2.3 percent as acceptable,” Hogan said.
On the broader market, decliners outpaced advancers by almost 4-to-1 on the New York Stock Exchange and the Nasdaq.
By sector, Internet stocks, networkers, brokers, gold stocks and airlines were some of the biggest losers.
The utility sector was one of the few areas showing gains.
Volume was 1.6 billion on the Big Board and 1.4 billion on the Nasdaq.
On Thursday, Bernanke will talk to the Economic Club of Chicago about energy.
