Stocks closed lower on Wall Street on Monday as the fall in tech companies offset gains elsewhere in the market.
The Standard & Poor’s 500 fell 0.4% and the tech-heavy Nasdaq composite fell 1.1%. The Dow Jones Industrial Average held up better, ending down just 0.1%.
The Dow benefited from a 6.3% gain in Disney, which soared after the news late Sunday that the entertainment giant had replaced chief executive Bob Chapek with his predecessor, Bob Iger.
Tesla fell 6.8% for the biggest decline among S&P 500 stocks and briefly fell to an intraday low of $167.54, the lowest point in two years. Shares of the electric car maker have fallen more than 50% this year as investors feared CEO Elon Musk could be distracted by his $44 billion purchase of Twitter.
The market decline comes on top of last week’s stock index losses and followed overnight news from China, which announced its first new death from COVID-19 in nearly six months as strict. new measures are imposed on Beijing and across the country to guard against further outbreaks. China’s ongoing strict lockdown policies have stunted economic growth in the world’s second-largest economy and stressed businesses.
“Some of the negativity we saw today is largely due to the idea that demand from China may not be as strong as expected,” said Liz Young, chief strategy officer. investment at SoFi.
Casino operator Wynn Resorts, which has a large footprint in China, fell 2.2%. Las Vegas Sands slipped 2.9%.
In total, the S&P 500 fell 15.40 points to 3,949.94. The Nasdaq slipped 121.55 points to 11,024.51. The Dow slipped 45.41 points to 33,700.28.
Tech stocks were the biggest drag on the benchmark S&P 500. Apple fell 2.2% and Visa 2.1%.
Retailers and other companies that depend on consumer spending also weighed on the index, as did energy stocks, which trailed a 0.4% drop in the price of U.S. crude oil. Target fell 3% and Exxon Mobil fell 1.4%.
Household goods makers, banks and businesses in other sectors held losses in check. PepsiCo gained 1.9% and Capital One Financial gained 2.4%.
Small company stocks lost ground. The Russell 2000 Index fell 10.59 points, or 0.6%, to 1,839.14.
European markets mostly fell, while Asian markets closed lower.