WASHINGTON (dpa-AFX) - After turning in a strong performance during last Friday's session, stocks showed a lack of direction over the course of the trading day on Monday. The major averages bounced back and forth across the unchanged line before eventually closing in negative territory.
The Dow underperformed its counterparts, sliding 257.59 points or 0.6 percent to 41,794.60. The Nasdaq fell 59.93 points or 0.3 percent to 18,179.98 and the S&P 500 dipped 16.11 points or 0.3 percent to 5,712.69.
The choppy trading on Wall Street came as traders seemed reluctant to make significant moves ahead of the U.S. elections on Tuesday, as Vice President Kamala Harris faces off against former President Donald Trump.
With polls showing an extremely tight race between Harris and Trump, the outcome of the presidential election may not be known on Election Day.
The results of House and Senate races are also likely to be in focus, as the makeup of Congress could affect how much the next president can accomplish.
'With the race still too close to call, it seems investors aren't ready to reposition portfolios until we get the result,' said Dan Coatsworth, investment analyst at AJ Bell. 'However, the moment we get clarity on the winner could lead to some sharp movements in the market as investors play catch-up with the election.'
Traders were also looking ahead to the Federal Reserve's monetary policy decision, which is due to be announced on Thursday.
The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.
The more notable move to the downside by the Dow came as Intel (INTC) and Dow Inc. (DOW) came under pressure following news they will removed from the blue chip index.
Meanwhile, shares of Nvidia (NVDA) rose on news the AI darling will replace Intel in the Dow prior to the start of trading on Friday. Paint maker Sherwin-Williams (SHW) also surged higher following news it will replace Dow.
Sector News
Reflecting the lackluster performance by the broader markets, most of the major sectors showed only modest moves on the day.
Airline stocks showed a substantial move to the downside, however, with the NYSE Arca Airline Index tumbling by 2.5 percent.
On the other hand, energy stocks turned in a strong performance, as the price of crude oil surged after OPEC+ decided to delay plans to increase output.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index jumped by 1.7 percent and the NYSE Arca Oil Index climbed by 1.4 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday, with the Japanese markets closed for a holiday. China's Shanghai Composite Index jumped 1.2 percent, while Hong Kong's Hang Seng Index rose by 0.3 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index crept up by 0.1 percent, the French CAC 40 Index and the German DAX Index fell by 0.5 percent and 0.6 percent, respectively.
In the bond market, treasuries moved notably higher amid uncertainty ahead of the presidential election. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 5.2 basis points to 4.309 percent.
Looking Ahead
Trading activity may remain somewhat subdued amid Election Day on Tuesday, although reports on the U.S. trade deficit and service sector activity may still attract attention.
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