U.S. stocks ended solidly lower Monday as buying appetite abated, following economic reports that pointed to weakness in China's economy, highlighting worries about a global economic recession. Health-care shares, meanwhile, also weighed on the broader market, with that category declining 0.7%.
The Dow Jones Industrial Average declined by 105 points, or 0.4%, at 27,910, the S&P 500 indexslipped 0.3% to 3,135, while the Nasdaq Composite Index retreated 0.4% to 8,622. All closing levels are on a preliminary basis.
On Friday, stocks soared after a better-than-expected jobs report sparked a rally. Equity benchmarks on Monday, however, finished near their lows of the session ahead of the Dec. 15 deadline for 15% import duties on $156 billion of annual consumer imports to take effect.
Data out of Beijing showed that China's exports unexpectedly dropped 1.1% in November from a year earlier, while shipments to the U.S. fell 23%, reflecting the weight of the U.S.-China trade clash. Investors will watch for the start of the Federal Reserve's two-day policy meeting, which kicks off Tuesday, with no expectation that the central bank will make changes to interest rates but hope that that officials may offer guidance on future policy.
In corporate news, Shares of Chevron Corp. fell 0.6% after Citi analyst Alastair Syme downgraded the stock to neutral from buy.
Source : MarketWatch