Technology shares led the broader market lower on Monday as investors dumped high-flying Big Tech stocks, pushing the Dow Jones Industrial Average and the S&P 500 off their record highs.
The 30-stock index relinquished record levels and lost 34.94 points to 34,742.82, as Microsoft and Apple dipped more than 2% each. Tesla shed more than 6%.
The broader index retreated 44.17 points, or 1%, to 4,188.43.
The NASDAQ Composite crumbled 350.38 points, or 2.6%, to 13,401.86.
Investors rotated out of growth names, resuming a trend seen earlier this year amid rising fears of inflation and higher interest rates. Facebook dropped more than 4%, while Amazon and Netflix both dropped over 3%. Alphabet dipped more than 2% after a downgrade by Citigroup. Cathie Wood’s Ark Innovation ETF fell 5% to its lowest level since November.
Gasoline futures rose after a ransomware attack forced the closure of the largest U.S. fuel pipeline over the weekend. Colonial Pipeline, which operates a 5,500-mile system, said it was forced to halt the transport of fuel from the Gulf Coast to the New York metro area on Friday as it “took certain systems offline to contain the threat.”
Colonial said Sunday evening that some of its smaller lateral lines once again online, but that its main lines are still shut down.
The market will face a key test on Wednesday with the release of inflation data. Investors fear a scenario where the Federal Reserve is forced to cut back its easy money policies to curb inflation, before the economy has fully recovered from the pandemic.
Prices for 10-Year Treasurys lost ground, raising yields to 1.60% from Friday’s 1.58%. Treasury prices and yields move in opposite directions.
Oil prices slid 11 cents to $64.79 U.S. a barrel.
Gold prices gained $7.40 to $1,838.70 U.S. an ounce.