US Rep. Michael McCaul, R-Texas, chairman of the House Committee on Homeland Security, center, meets with specialist Jason Hardzewicz, left, during his visit to the trading floor of the New York Stock Exchange, Monday, June 8, 2015. US stocks dropped Monday, as the week kicked off with large declines especially in tech shares and airline stocks. AP PHOTO/RICHARD DREW
NEW YORK—US stocks dropped Monday, as the week kicked off with large declines especially in tech shares and airline stocks.
At the closing bell, the Dow Jones Industrial Average stood at 17,767.65, down 81.81 points (0.46 percent).
The broad-based S&P 500 shed 13.42 (0.64 percent) to 2,079.41, while the tech-rich Nasdaq Composite Index fell 46.83 (0.92 percent) to 5,021.63.
Tech shares like Intel (-1.7 percent) and Facebook (-1.8 percent) were hard hit on a day with no major US economic indicators. Airline stocks also fell sharply on worries about overcapacity.
Analysts said the market continued to weigh the implications of Friday’s surprisingly good US jobs report, especially for the Federal Reserve’s plans for an interest rate hike.
The jobs report “was a game changer that people are still struggling to digest,” said Chris Low, chief economist of FTN Financial.
“The Fed was thought to be out of play at least until December and now, the chances are it’s going to raise interest rates in September, perhaps as early as July.”