The Dow Jones Industrials cratered 260.99 points to close at 33,717.09.
The S&P 500 faltered 52.79 points, or 1.3%, to 4,017.77.
Still, the S&P 500 is headed for its best January since 2019 when it gained nearly 8%. As of Monday morning, the broader market index is up 5.2% for 2023 following a 19% loss last year.
The NASDAQ Composite tumbled 227.9 points, or 2%, to 11,393.81.
Ford shares fell more than 1% after the automaker said it’s cutting prices and ramping up production on its electric Mustang Mach-E crossover, following a similar announcement from Tesla.
Still, the S&P 500 is headed for its best January since 2019 when it gained nearly 8%. As of Monday morning, the broader market index is up 5.2% for 2023 following a 19% loss last year.
However, there are several tests this week for the 2023 rally. About 20% of the S&P 500 will report earnings this week, including McDonald’s and General Motors on Tuesday followed by tech giants Apple, Meta Platforms, Amazon and Alphabet later in the week.
The Federal Open Market Committee meets on Tuesday and Wednesday, when the Fed is expected to hike rates by one-quarter of a percentage point. Investors will be looking for clues about how much higher the central bank will take rates in the fight against inflation.
Traders have pushed stocks higher this year in part because of softer inflation reports, which they suspect could cause the Fed to soon pause its hiking campaign.
Prices for the 10-year Treasury fell slightly, raising yields to 3.55% from Friday’s 3.52%. Treasury prices and yields move in opposite directions.
Oil prices dumped $1.82 to $77.86 U.S. a barrel.
Gold prices doffed $7.70 to $1,921.700.40 U.S. an ounce.