The S&P 500 technology sector fell the most among the 11 major S&P 500 sectors, while energy stocks rose 0.9% on the back of higher oil prices.
U.S. consumer price data for March and $271 billion of U.S. Treasury auction this week could end a recent lull in the bond market, reigniting a rise in yields that worried investors in the first quarter.
Federal Reserve Chair Jerome Powell on Sunday said the U.S. economy is at an "inflection point" with expectations that growth will pick up speed in the months ahead, but also risks if a hasty reopening leads to a continued increase in coronavirus cases.
Results from big U.S. banks Goldman Sachs, JPMorgan and Wells Fargo will pour in on Wednesday, kicking off the first-quarter earnings season where investors will look for reasons to support a stock market at all-time highs.
S&P 500 earnings are expected to have jumped 25% in the quarter from a year ago, according to Refinitiv IBES data, the biggest quarterly gain since 2018, when tax cuts under former President Donald Trump drove a surge in profit growth.
At 9:48 a.m. ET the Dow Jones Industrial Average was down 42.80 points, or 0.13%, at 33,757.80, the S&P 500 was down 4.33 points, or 0.10%, at 4,124.47 and the Nasdaq Composite was down 62.12 points, or 0.45%, at 13,838.07. were down 47 points, or 0.34%
Tesla Inc rose 2.7% after Canaccord Genuity upgraded the electric-car maker's shares to "buy" and said the company could become "the brand" in energy storage.
U.S. shares of Alibaba jumped nearly 9% after the ecommerce company said it does not expect any material impact from the antitrust crackdown in China that will push it to overhaul how it deals with merchants.
Shares of Nuance Communications Inc surged 16.9% as Microsoft Corp said it will buy the artificial intelligence and speech technology company in a $19.7 billion deal.
Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.91-to-1 ratio on the Nasdaq.
The S&P index recorded 50 new 52-week highs and no new low, while the Nasdaq recorded 51 new highs and 25 new lows.
(Reporting by Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.