The S&P 500 fell 0.5% and the tech-heavy Nasdaq lost 1%. Small-company stocks did worse than the rest of the market.
Technology companies helped drag U.S. stocks broadly lower Monday, pulling the indexes below the record highs they reached last week. The S&P 500 dropped 0.5%, shedding more than a third of its gain from last week. Tech stocks were the biggest weight on the market, but the losses were shared broadly by a mix of banks, energy companies and others that rely on direct consumer spending. Chipmaker Intel fell 1.7%, Capital One lost 0.9% and Valero Energy slid 2.3%. Only real estate stocks eked out a gain. The pullback came as bond yields mostly moved higher after easing last week. Rising bond yields tend to make shares in technology companies that have had a strong runup over the past year look too expensive. “What we’re seeing in the markets today is that bond yields, after falling last week, are back to rising again,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “And you can see that negative correlation between rising bond yields and declining prices in technology is still with us.” The S&P 500 fell 22.21 points to 4,163.26. The benchmark index is coming off its fourth straight weekly gain. The Dow Jones Industrial Average lost 123.
