NEW YORK — The Dow Jones industrial average slipped into the red for the year on Monday as stocks extended their slump.
Airlines were among the biggest losers amid concern that capacity growth in the industry may curb profitability. JetBlue Airways, American Airlines and Delta Air Lines were among the carriers that declined.
Stocks have sagged in the past two weeks as investors try to assess if Federal Reserve policymakers will raise their benchmark interest rate this year for the first time since the recession. A stronger-than-forecast jobs report Friday suggested that the economy is recovering from its winter slump.
The Fed has kept its benchmark interest rate unchanged at close to zero for more than six years to help support lending and boost the economy. Those low rates have also boosted the stock market in that time, pushing it to record levels.
“The market is suggesting that if the data continue at this pace, the Fed will be more inclined to raise rates in September, rather than waiting,” said Quincy Krosby, a market strategist at Prudential Financial.
The Standard & Poor’s 500 index dropped 13.55 points, or 0.7 percent, to 2,079.28. The Dow fell 82.91 points, or 0.46 percent, to 17,766.55, giving it a loss of 0.3 percent for 2015. The Nasdaq composite declined 46.83 points, or 0.9 percent, to 5,021.63.
On Monday, airline stocks slumped as industry executives met in Miami for the International Air Transportation group’s annual general meeting.
American Airlines CEO Doug Parker said Sunday he was worried that growth in airline capacity could depress profits.
Brokerage Raymond James cut its earnings forecasts for American Airlines, Delta Air Lines and United Continental. The firm said in a note that “softer” economic growth would mean that airlines would struggle to raise fares as much as they had previously anticipated during the stronger summer months.
