Troubled Monday sessions continue on Wall Street
Updated: 2012-09-18 10:26
NEW YORK - Monday's trouble continued on Wall Street, with the Dow Jones Industrial Average falling in 14 of last 15 Monday sessions, as investors booked in profits after stocks hit multi-year highs.
When the market closed, the Dow Jones Industrial Average dropped 40.35 points, or 0.30 percent, to 13,553.02. The Standard & Poor's 500 Index was down 4.58 points, or 0.31 percent, to 1,461. 19. The Nasdaq Composite Index fell 5.28 points, or 0.17 percent, to 3,178.67.
The recent rally, which was boosted by the Federal Reserve decision to buy more bonds, lost momentum on Monday. Major indexes snapped a four-day winning streak, with financials and energy stocks leading the decline.
The S&P financial index fell 1.1 percent while Bank of America lost 2.5 percent, one of the worst performers among 30 Dow components.
Meanwhile, oil plunged over 2 percent in choppy trading as the effect of the Fed stimulus faded and concerns over weak global energy demand weighed in, dragging down energy shares and the broader market.
Stocks started the day on weak notes after the New York Federal Reserve Monday reported that the Empire State manufacturing index, a gauge for manufacturing activity in New York State, declined to - 10.41 in September, lower than the reading in the previous month and way below market estimates.
News from overseas were also not assuring. Financial ministers of European Union failed to agree on details of bailout requests for the troubled countries and fixed a timetable to establish a more unified banking sector at the meeting in Cyprus on Sept 14.
Moreover, Citigroup lowered its growth forecast for China for 2013 from 8 percent to 7.6 percent, adding to concern over global economic slowdown.
Apple once again became the bright spot in the market, with its shares briefly breaking $700 for the first time in its history in after-hour trading, as the tech giant announced the sale of more than 2 million units of the new iPhone 5 in 24 hours.
In other markets, the dollar gained some strength but still traded around multi-month lows against major counterparts.
Light, sweet crude for October delivery fell $2.38, or 2.40 percent, to settle at $96.62 a barrel on the New York Mercantile Exchange.