New York – Wall Street retreated Monday, taking a break from last week’s big advances, as financial stocks fell amid fresh concerns about soured loans.
With little fresh data to go on Monday, investor enthusiasm weakened by midsession and sectors including banks and homebuilders showed declines, while technology stocks fared better.
Stocks began to give up their gains after the International Monetary Fund warned that the credit upheaval hurting international financial markets would likely be “protracted” and dampen growth of the global economy.
While its stock didn’t fall sharply, General Motors Corp. shares lost ground after the United Auto Workers began its first nationwide strike during auto contract negotiations since 1976.
In addition, the stock market’s pullback might have been expected following gains last week of more than 2.5 percent in the major averages.
“I think you’re seeing some profit-taking after last week’s rally,” said Scott Fullman, director of investment strategy at Israel A. Englander & Co. “You have consumer confidence that is something being closely watched, and you’re seeing a general end-of-quarter nervousness.”
The Dow Jones industrials fell 61.13, or 0.44 percent, to 13,759.06. Broader indicators fell, with the Standard & Poor’s 500 index declining 8.02, or 0.53 percent, to 1,517.73, while the Nasdaq composite index lost 3.27, or 0.12 percent, to 2,667.95.
Oil prices fell as a tropical depression in the Gulf of Mexico dissipated without causing damage to key oil and gas infrastructure.
