STORY: U.S. stocks added to last week's losses on Monday, as investors couldn't shake the funk Fed Chair Jerome Powell put them in after dashing hopes the Federal Reserve might ease up on interest rate hikes.
The Dow fell half of a percent. The S&P 500 dropped two thirds of a percent, while the Nasdaq led the losses, ending a full percent lower.
Stephen Lee is a principal with Logan Capital Management.
"I think many investors thought they had the idea that the Fed would have the ability to throttle back on raising interest rates, that they were a little less concerned about inflation. And the message on Friday was that that may not be the case. So certainly, you saw the immediate reaction on Friday. And today's a little bit of follow through. Plus, at this time of year, it tends to be a little thin. A lot of investors aren't at their desks, so that tends to be more volatile as well. But I think we're seeing a period of adjustment, just a little bit of a rethink in terms of how far we are on the battle with inflation."
Mega-cap tech and growth stocks such as Apple and Microsoft were among the biggest drags on the S&P 500.
Shares of Bed Bath & Beyond rode the roller coaster UP Monday, jumping nearly 25% as eager meme stock investors looked ahead to the struggling retailer's strategic update about its turnaround plan on Wednesday.
Energy stocks rose as crude prices jumped about 4% on possible OPEC+ output cuts and recent unrest in Libya, where violence in Tripoli over the weekend sparked concern that the country could slide into a full-blown conflict.
And Bristol Myers Squibb slid more than 6% after its drug candidate for preventing ischemia strokes missed the main goal in a mid-stage trial.